Economic History of The Ottoman Empire - International

International

Global trade increased around sixty-fourfold in the 19th century whereas for the Ottomans it increased around ten to sixteenfold. Exports of cotton alone doubled between 1750 and 1789. The largest increases were recorded from the ports of Smyrna and Salonica in the Balkans, however they were partially offset by some reductions from Syria and Constantinople. While cotton exports to France and England doubled between the late 17th and late 18th centuries, exports of semi-processed goods to northwest Europe also increased. Whilst the Ottoman market was important to Europe in the 16th century, it was no longer so by 1900. The Ottoman Empire was not shrinking - quite the opposite in fact – however it was becoming relatively less significant.

As regards trade imbalance, only Constantinople ran an import surplus. Both Lampe and McGowan argue that the empire as a whole, and the Balkans in particular, continued to record an export surplus throughout the period. The balance of trade however moved against the Ottomans from the 18th century onwards. They would re-export high value luxury goods, mainly silks from the Far East and exported many of its own goods. Luxury goods began being imported. Through the 18th century, exports moved to unprocessed goods whilst at the same time commodities were imported from European colonies. Most of these commodities were produced by slave labour undercutting domestic production. However, according to most scholars, a favourable balance of trade still existed at the end of the 18th century. 19th century trade increased multi-fold, however exports remained similar to 18th century levels. Foodstuffs and raw materials were the focus with carpets and raw silk appearing in the 1850s. Although the basket of exports remained generally constant, relative importance of the goods would vary considerably.

From the 18th century onwards, foreign merchants and Ottoman non-Muslims became dominant in the growing international trade. With increasing affluence, their political significance grew especially in Syria. Muslim merchants however dominated internal trade and trade between the interior and coastal cities.

Foreign trade, a minor part of the Ottoman economy, became slightly more important towards the end of the 19th century with the rise of protectionism in Europe and producers looking to new markets. Its growth was seen throughout the period under study, particularly the 19th century. Throughout, the balance of payments was roughly on par with no significant long-term deficits or surpluses.