Recovery from financial crises in peripheral economies, 1870-1913

These files are the replication files for "Recovery from financial crises in peripheral economies, 1870-1913" by Peter H. Bent. <br><br>Abstract: What drives recoveries after financial crises? I address this question for the 1870-1913 "first era of globalization," focusing on whether trade policy changes or positive movements in commodity prices played a bigger role in stimulating output growth after financial crises in peripheral economies. At this time — before governments had modern fiscal and monetary policy tools to use while responding to crises — protectionism was one of the few national-level policy options available for shaping economic activity. Improving terms of trade is another major factor that could influence output growth in the commodity-exporting countries included in this analysis. While previous studies of this period have looked at longer-run associations between these explanatory variables and economic growth, I focus on the aftermath of crises, and find that tariff rate increases had a positive impact on GDP per capita growth, while positive terms of trade changes did not have a significant effect on output growth. This suggests that governments played a substantial role in shaping post-crisis recoveries during this period. <br>