Assessing the role of trade in shaping the Great Divergence between Imperial China and Western Europe

Wu, Ningzhu (2024) Assessing the role of trade in shaping the Great Divergence between Imperial China and Western Europe. Economic History Student Working Papers (34). Department of Economic History, The London School of Economics and Political Science, London, UK.

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Abstract

This paper examines the role of international trade in shaping the economic development of Imperial China and Western Europe, focusing on the 50 years following the Opium War, a pivotal moment in the Great Divergence. Utilizing newly discovered primary data from Chinese Customs records, this study explores how trade dynamics—including volume, volatility, and product categories—interacted with political, institutional, and colonial factors. While trade significantly boosted industrialization in Western Europe, China’s weak institutions and colonial exploitation made it particularly vulnerable to trade fluctuations. Unlike other peripheral economies that experienced deindustrialization, China faced economic instability without industrial decline due to deteriorating trade terms. Trade, acting as an influence amplifier, magnified China’s institutional weaknesses, further deepening the divergence between China and the West. This paper contributes fresh insights into the broader impact of trade on the Great Divergence and offers practical lessons for underdeveloped regions today.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/Economic-History/Working-Pap...
Additional Information:	© 2024 The Author
Divisions:	Economic History
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N75 - Asia including Middle East N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N73 - Europe: Pre-1913
Date Deposited:	03 Feb 2025 11:21
Last Modified:	04 Feb 2025 00:13
URI:	http://eprints.lse.ac.uk/id/eprint/127152

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