Factor endowments and international trade: a study of land embodied in trade on the Baltic Sea region, 1750–1856

Abstract

AbstractBaltic trade is one of the key examples of flourishing economic activity in early modern European history. This study empirically outlines the role of comparative resource advantages between 1750 and 1856, using trade data from the Sound Toll Registers Online. On the one hand, the results show the significance of relative land abundance for trade patterns between the Baltic Sea region and North-Western Europe: the land abundant Baltic Sea region was overall exporting more land-intensive commodities. On the other hand, however, the results also show a seeming paradox: increasing trade openness during the nineteenth century was not associated with a higher degree of specialization along these comparative advantages.