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Protectionism, agricultural prices and relative factor incomes: Sweden´s wage-rental ratio, 1877-1926

Report
Authors Jan Bohlin
Svante Larsson
Place of publication Göteborg
Publication year 2006
Published at Department of Economic History
Language en
Links hdl.handle.net/2077/2957
Keywords Economic History; Land prices; wages; wage-rental ratio; protectionism, Sweden
Subject categories Economic History

Abstract

Trends in wage-rental ratios have figured prominently in the recent literature on factor price convergence and globalisation in the late nineteenth century. In that literature Sweden has been described as a free trade country whose wage-rental ratio exhibited a distinguished upward trend before World War I. This article presents a new series of land prices which indicates an increase in land rentals and an evolution of the wage-rental ratio more in line with other European protectionist countries. We explore the determinants of the Swedish wage-rental ratio and assess the relative importance of protectionism and the change in the product mix from arable to animal products in Swedish agriculture.

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