The Strange Birth of Liberal Denmark: Danish trade protection and the growth of the dairy industry since the mid-nineteenth century
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The Strange Birth of Liberal Denmark : Danish trade protection and the growth of the dairy industry since the mid-nineteenth century. / Henriksen, Ingrid; Lampe, Markus; Sharp, Paul Richard.
Department of Economics, University of Copenhagen, 2010.Research output: Working paper › Research
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TY - UNPB
T1 - The Strange Birth of Liberal Denmark
T2 - Danish trade protection and the growth of the dairy industry since the mid-nineteenth century
AU - Henriksen, Ingrid
AU - Lampe, Markus
AU - Sharp, Paul Richard
N1 - JEL classification: N5, N7
PY - 2010
Y1 - 2010
N2 - The usual story of the "first era of globalization" at the end of the nineteenth century sees Denmark as something as an outlier: a country which, like Britain, resisted the globalization backlash in the wake of the inflow of cheap grain from the New World, but where agriculture, rather than going into decline, in fact flourished. Key to the success of Danish agriculture was an early diversification towards dairy production. We dispute this simple story which sees Denmark as something of a liberal paragon. Denmark's success owed much to a prudent use of trade policy which favoured dairy production. Moreover, this favouritism continued even after a more general movement to free trade in the 1860s. Using micro-level data from individual dairies, we quantify the implied subsidy to dairy production from the tariffs, and demonstrate that this in many cases ensured the profitability of individual dairies.
AB - The usual story of the "first era of globalization" at the end of the nineteenth century sees Denmark as something as an outlier: a country which, like Britain, resisted the globalization backlash in the wake of the inflow of cheap grain from the New World, but where agriculture, rather than going into decline, in fact flourished. Key to the success of Danish agriculture was an early diversification towards dairy production. We dispute this simple story which sees Denmark as something of a liberal paragon. Denmark's success owed much to a prudent use of trade policy which favoured dairy production. Moreover, this favouritism continued even after a more general movement to free trade in the 1860s. Using micro-level data from individual dairies, we quantify the implied subsidy to dairy production from the tariffs, and demonstrate that this in many cases ensured the profitability of individual dairies.
KW - Faculty of Social Sciences
KW - mejerier
KW - Danmark
KW - dairies
KW - Denmark
KW - tariffs
KW - cheese
M3 - Working paper
BT - The Strange Birth of Liberal Denmark
PB - Department of Economics, University of Copenhagen
ER -
ID: 16976265