TY  - JOUR
AU  - Taylor,Alan M.
AU  - Wilson,Janine L. F.
TI  - International Trade and Finance under the Two Hegemons: Complementaries in the United Kingdom 1870-1913 and the United States 1920-30
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12543
PY  - 2006
Y2  - September 2006
UR  - http://www.nber.org/papers/w12543
L1  - http://www.nber.org/papers/w12543.pdf
N1  - Author contact info:
Alan M. Taylor
Department of Economics
University of Virginia
Monroe Hall
Charlottesville, VA 22903
Fax: (434) 982-2904
E-Mail: alan.m.taylor@virginia.edu

Janine L. F.. Wilson
Department of Economics
University of Caifornia
Davis, CA 95616
E-Mail: jlflathmann@ucdavis.edu
AB  - Do international trade and finance flow together?  In theory, trade and finance can be substitutes or complements, so the matter must be resolved empirically.  We study trade and financial flows from the United Kingdom from 1870 to 1913 and the United States in the interwar years.  Trade and finance are robustly correlated, even after allowing for simultaneity.  Evidence from the British Empire casts doubt on the idea that trade is a punishment device in the event of a default.
ER  -