The panopticon of Germany's foreign trade, 1880-1913: New facts on the first globalization

Abstract

We present and analyze the panopticon of Germany's foreign trade, with new data on all products, all trade partners, quantities, and values, at annual frequency, 1880-1913. Historical product categories are reclassified according to the Standard International Trade Classification (SITC) to ensure comparability over time and across countries. Germany became increasingly specialized in manufacturing, in line with theories of comparative advantage. However, most trade growth occurred along the extensive margin, and 20-25 percent of trade was intra-industry trade, at five-digit SITC. Both facts suggest substantial within-sector heterogeneity. We discuss why this matters for our understanding of the first globalization.