The panopticon of Germany's foreign trade: New facts on the first globalisation, 1880–1913
Dennis Novy, Christopher Meissner, David Jacks We are used to distinguishing between the ‘first’ and ‘second’ globalisation, separated not only by two world wars but also by changes in technology and institutions, and hence by their basic economic logic. The first globalisation is typically described in terms of ‘classical’ trade models of comparative advantage, where countries trade to take advantage of their differences. By contrast, the second globalisation is largely described in terms of ‘new’ trade models based on monopolistic competition and firm heterogeneity. Here, s...
Source: voxeu.org