Networks in Trade - Evidence from the Legacy of the Hanseatic League

Abstract

We study trade networks following the decline of the Hanseatic League, using a novel trade data set that covers cities and traders in Northern Europe over 190 years. By the time of its dissolution in 1669, trade on former Hansa routes is within predictions from a gravity framework. However, traders continue to shape the composition of trade: Hanseats’ trade within the former network displays significant persistence for centuries. We thus identify trading capital at the level of individual traders. Our paper highlights the long-run stability of commercial and social networks, which persist when other economic effects do not.

Keywords: Hanseatic League, Network, Gravity, Trade JEL Classification: F14, N73, N93