The local effects of the first Golden Age of Globalization: Evidence from American ports, 1870–1900

Abstract

This paper uses digitized US trade flows data at the customs district level from 1870 to 1900 to investigate whether trade shocks had an effect on the size and composition of the population of US ports and on their economic activity. I find that trade increased the population of districts, driven principally by growth in urban populations, and that manufacturing activity also increased. However, these results dissipate rapidly with distance: counties adjacent to ports do not see similar gains from trade booms at nearby ports. My results imply that trade was a contributing factor in the structural transformation of America's economy.