ABSTRACT

This chapter explores the growing connections between the Central, Eastern, and Southeastern Europe (CESEE) region and the economies of Western Europe over the long 19th century. From the dissolution of the Holy Roman Empire in 1806 until the onset of World War I in 1914, the regions of CESEE experienced slow but rising integration with the economies of Western Europe and the rest of the global economy. CESEE labor markets were increasingly integrated with those of Western Europe and the rest of the global economy, especially after 1870. The CESEE’s experience of economic integration with Western Europe and the rest of the global economy took place amidst this backdrop of institutional development, infrastructure building, and policymaking. The evidence on factor and trade flows during the long 19th century suggests a slow but persistent process of economic integration between CESEE, Western Europe, and the rest of the global economy.