Information costs and trade: evidence from international electric telegraphy during the 'golden age' of globalisation.

The role of improved information flows in facilitating international trade has been relatively neglected; this paper examines the issue in the context of international electric telegraphy during the 19th-century 'golden age' of globalisation. Having compiled the most comprehensive dataset of new int...

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Publicado en:Oxford Economic Papers Vol. 78; no. 3; pp. 642 - 665
Autores principales: Bottomley, Sean, Varian, Brian D
Formato: Artículo
Publicado: Oxford University Press / USA Jul2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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          Bottomley, Sean
          Varian, Brian D
        affil:
          Department of Economics, Cardiff University, Aberconway Building, Colum Drive, Cardiff, CF10 3EU, United Kingdom
          Department of Economics, Newcastle University, 5 Barrack Rd, Newcastle upon Tyne, NE1 4SE, United Kingdom
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        United Kingdom
        Telegraph & telegraphy
        International trade
        Globalization
        Telecommunication
        Transaction costs
        Nineteenth century
        British colonies
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          Telegraph & telegraphy
          International trade
          Globalization
          Telecommunication
          United Kingdom
          International Trade Financing
          All Other Telecommunications
          Telecommunications Resellers
          Other telecommunications
          Communication Equipment Repair and Maintenance
          Wired Telecommunications Carriers
          Transaction costs
          Nineteenth century
          British colonies
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        19th century
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        technology
        telegraph
        trade
        19th century
        copyrightHolder:Oxford University Press
        copyrightYear:2026
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        globalisation
        information costs
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        technology
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      ab: The role of improved information flows in facilitating international trade has been relatively neglected; this paper examines the issue in the context of international electric telegraphy during the 19th-century 'golden age' of globalisation. Having compiled the most comprehensive dataset of new international telegraphic connections for the period, we analyse the effect of new connections on polity-specific British trade from 1849 to 1903. We find no statistically significant effect of the telegraph on British trade overall. Our upper-bound estimate of the potential effect of the telegraph suggests that previous estimates of the effect of the telegraph network on trade are implausibly high. However, we do establish that trade between Britain and polities within the British Empire increased by an estimated 39% (48% for exports specifically), indicating that the trade-enhancing effects of the telegraph were contingent on the institutional context within which communication and trade were occurring.
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    language: English
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