Determinants of Bilateral Trade between Europeans and the Ottoman Empire: 1878-1913

Abstract

During the 19^th century, the Ottoman Empire experienced an increased integration into the world economy, primarily through the development of bilateral trade with European markets. This study examines the determinants of bilateral trade of the Ottoman Empire with its trading partners between 1878 and 1913 using a panel regression framework. The results indicate that the GDP of trading partners, distance, common borders, and the adoption of the metric system significantly affected bilateral trade. In contrast, the GDP of the Ottoman Empire, trade agreements, railways, and commercial ports had no statistically significant effects on the mentioned trade relations.

JEL classification: B10, N7, F14

Keywords: Ottoman Empire, Nineteenth century, Foreign trade, Gravity model of trade