Grain market integration in Sweden, 1732-1914

Abstract: With new datasets being compiled and new methods introduced, the last two decades have seen a surge in papers investigating historic market integration. These papers have, however, mainly been concerned with international market integration. By applying a variety of statistical measures, including principal component analysis and coefficients of variation, to historical grain prices in Sweden this paper adds insight to the ongoing debate on the development and timing of national market integration. The findings of this paper indicate that the market integration process in Sweden was gradual rather than sudden and that Sweden started integrating early in comparison with other European countries. The fact that Sweden, at the same time, was relatively poorly integrated in the international market suggests that the main driving forces behind Swedish integration are to be found within Sweden. Improved transports, liberal domestic trade policies, and harsh agricultural conditions are possible explanations.