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RESEARCH PAPER NO. 889

COMPLACENT OR COMPETITIVE? BRITISH EXPORTERS AND THE DRIFT TO EMPIRE

BY

GARY B. MAGEE & ANDREW S. THOMPSON

NOVEMBER 2003

Department of Economics. University of Melbourne. Melbourne Victoria 3010 Australia

The belief that Britain's empire markets were soft is well entrenched in the literature. It is, however, a belief that has been largely untested. Indeed, the literature does not even offer an explicit definition of softness. This paper attempts to fill this gap by discussing the meaning of the term and, then, posing the question whether between 1870 and 1914 Britain's fastest growing markets - Australasia and Canada - can in fact be reasonably labelled soft, as has often been assumed. The paper concludes that the demand for British imports in these markets were driven more by income and price considerations than by colonial sentiment or preference.

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