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The Political Instability of Reciprocal Trade and the Overthrow of the Hawaiian Kingdom

Published online by Cambridge University Press:  03 March 2009

Sumner J. La Croix  and
Christopher Grandy
Sumner J. La Croix
Affiliation:
Professor, Department of Economics, University of Hawaii, Honolulu, HI 96822
Christopher Grandy
Affiliation:
Economist with the State of Hawaii, Department of Business, Economic Development, and Tourism, P.O. Box 2359, Honolulu, HI 96804
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Abstract

The overthrow of the Hawaiian monarchy in 1893 offers an illuminating case study of the political economy of preferential trading relationships between large and small countries. The limited-term reciprocity treaty of 1876 between Hawaii and the United States generated problematic strategic dynamics, as the normal operation of the treaty gradually worsened Hawaii’s bargaining position. This allowed the United States to extract better terms when the treaty expired in 1883 and to act opportunistically in 1890 with the passage of the McKinley Tariff. The political economy of the treaty contributed significantly to the overthrow of the Hawaiian monarchy.

Type
Articles
Information
The Journal of Economic History , Volume 57 , Issue 1 , March 1997 , pp. 161 - 189
Copyright
Copyright © The Economic History Association 1997

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