Introduction

A new CEPR discussion paper offers an intriguing explanation of the rise and fall of empires in the industrial era based on patterns of trade. Empires were not always shaped by economic considerations, though this could have a broader economic rationale such as the need to protect navigation routes. The authors also argue that empires were much more far reaching in terms of fostering intra-imperial trade than regular trade blocks. For example, they meant that the colonies would adopt the language and economic institutions of the mother country. This had a tremendous effect on intra-im imperial trade and is known to still matter for trade nowadays.