Capital Markets in China and Britain, 18th and 19th Century: Evidence from Grain Prices / Wolfgang Keller, Carol H. Shiue, Xin Wang.

Format:

Book

Author/Creator:

Keller, Wolfgang.

Contributor:

National Bureau of Economic Research.

Shiue, Carol H.

Wang, Xin.

Series:

Working Paper Series (National Bureau of Economic Research) no. w21349.

NBER working paper series no. w21349

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Capital Markets in China and Britain, 18th and 19th Century

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

Based on the most comprehensive grain prices available, we employ a storage model to estimate consistent interest rates and compare capital market development in Britain and China. Interest rates for Britain were lower than China's on average by about three percentage points from 1770 to 1860. Regional capital market integration in the Yangzi Delta comes close to the British average at distances below 200 kilometers, but at larger distances interest rate correlations in Britain are twice those of the Delta, and three or more times as high as elsewhere in China. Overall, our results suggest capital market divergence at an early date.

Notes:

Print version record

July 2015.