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A Comparison of Market Integration in Nineteenth‐Century China and Japan
Author(s) -
Yao Ke,
Zheng XiaoPing
Publication year - 2016
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/aehr.12109
Subject(s) - cointegration , china , industrialisation , market integration , economics , error correction model , chinese market , econometrics , macroeconomics , geography , market economy , archaeology
This paper performs a cointegration analysis using an Error Correction Model (ECM) on annual rice prices to measure and compare market integration in China and Japan during the nineteenth century. We find markets in Japan were more integrated than in China at both the regional and national levels during the period. Moreover, market integration in Japan improved during industrialisation. These findings support the view that a well‐integrated market is a cause as well as a result of economic growth.