The Growth of the International Economy, 1820-1960

An Introductory Text

Edited by A. G. Kenwood & A. L. Lougheed

Subjects: International Business
Paperback : 9781438433721, 319 pages, June 1971
Hardcover : 9780873951371, 319 pages, June 1971

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Table of contents


Part I: The International Economy, 1820-1913

1. The causes of the growth of the international economy in the nineteenth century

Technological progress: industry and agriculture

Technological progress: transport and communications

The accumulation of capital

The growth of world population

The supply of natural resources

The growth of real incomes

The spread of economic freedom

2. International long-term capital movements, 1820-1913

The growth of foreign investment

The direction of foreign investment

Determinants of capital outflow

The use of foreign funds in borrowing countries

Economic consequences of foreign investment

3. International migration, 1820-1913

European migration, 1821-1913

Migration and its causes

Aids to mass emigration

Economic consequences of migration

Intracontinental migration

Asiatic migration and tropical development

4. Commercial policy in the nineteenth century

Britain adopts free trade

The spread of free trade

The consequences of free trade

The return to protection

The economic consequences of protection

5. Foreign trade in the nineteenth century

The growth of world trade before 1913

The direction of world trade before 1913

The composition of world trade before 1913


6. The growth of a multilateral payments network


Development of the system

Foreign investment and the multilateral settlements network

Concluding remarks

7. The growth of an international monetary system: the gold standard before 1913

Bimetallic and monometallic standards

Britain adopts the gold standard

International monetary standards up to 1870

The spread of the gold standard

The role of sterling as an international currency and the importance of the London capital market

The working of the gold standard

Divergence between classical theory and empirical evidence

Other features of the adjustment mechanism


8. International aspects of economic growth in the nineteenth century: the spread of industrialization


The spread of industrialization

The contribution of the international economy

Causes of the limited spread of industrialization


9. International aspects of economic growth in the nineteenth century: the export economies


Regions of recent settlement

The export economies

Economic imperialism and colonialism

10. Trends and fluctuations in the international economy before 1913

The international transmission of business cycles

Long swings and the international economy

Long-run trends in the terms of trade

Part II: The Interwar Years

11. The international economy in the interwar years

Primary production

Population growth and migration

Manufacturing production

The intensification of protectionism

12. The restoration of the gold standard and the economic recovery of the twenties

Post-war inflation and the restoration of the gold standard

Weaknesses in the post-war gold standard:international investment

Institutional weaknesses of the restored gold standard

The economic boom of the late twenties

13. The collapse of the gold standard and the disintegration of the international economy

Crisis in agriculture

Financial crisis in Europe

The end of the gold standard

Growth of restrictions on finance and trade

International financial co-operation

Regional economic co-operation

International commodity control schemes


14. International trade during the interwar period

The growth of world trade in the interwar years

The direction of world trade between the wars

The changing composition of world trade

Diminishing trade hypothesis

Part III: The Post-1945 International Economy

15. Wartime preparations for the future international economy and post-war reconstruction

The International Monetary Fund

The International Bank for Reconstruction and Development

Post-war reconstruction

16. The international economy in the 1950s

Population growth and migration

International capital flows: private investment

International capital flows: foreign aid and official long-term loans

Technological change and world trade


17. The international monetary system, 1945-60

Performance of the system, 1945-52

Performance of the system, 1953-60

18. International commercial policy, 1945-60

The International Trade Organization

The inauguration of GATT

Discrimination in trade relations

Regional trading blocs

International commodity agreements


19. Trade and growth in the international economy, 1945-60: the developed economies

Trends in trade

Economic growth in the developed economies, 1945-60

20. Trade and growth in the international economy, 1945-60: the developing and centrally-planned economies

The developing economies

The centrally-planned economies

21. Epilogue



Here is an introduction to the study of the international economy as a mechanism for diffusing modern economic growth between nations. It is divided into three parts, of which the first examines the workings of the system in the years before 1914. This includes an analysis of the conditions favorable to the growth of international economic relations during the period, examines the changing character of the international flows of labor, capital and trade, and surveys contemporary commercial and international monetary policies. This first part concludes with a chapter analyzing the international economy as a mechanism for diffusing economic growth, and another chapter examining the nature of the economic trends and fluctuations associated with this phase in the growth of the international economic system.

The second part gives an account of the collapse of the international economy during the interwar years, and traces the causes of collapse to changes in the structure and functioning of the system brought about by World War I and the depression of the 1930s.

The final part takes the story beyond World War II. It describes the wartime and post-war efforts to reconstruct the international economic system, and examines the working of the new system in the period after 1945, bringing out both its strengths and its weaknesses.

Both the authors are Senior Lecturers in Economics at the University of Queensland, one specializing in Economic History, and the other in International Trade. Between them they have written a textbook of very high quality and one likely to be a great help to students.