Palma, NunoZhao, Liuyan2021-09-152021-09-152021Palma, N., Zhao, L. (2021). The Efficiency of the Chinese Silver Standard, 1920-1933. Journal of Economic History, 81(3), pp. 872-9080022-0507http://hdl.handle.net/10451/49518This item may be available elsewhere in EconPapers: https://econpapers.repec.org/paper/mansespap/2004.htmWe test for integration of financial markets in China during 1920-1933 using a new dataset of domestic exchange rates. Our data concerns tael-denominated telegraphic transfers between Shanghai and nine other cities. We find that Chinese financial markets, as measured by the efficiency of silver-point arbitrage, were highly integrated among major commercial hubs in north and central China, but there was a lower level of integration for more remote cities in the south. Our paper presents the first comprehensive assessment of the efficiency of the Chinese silver standard and contributes to a revaluation of market performance during pre-communist China.engSilver point arbitrageMarket integrationExchange ratesChinese economyjournal article10.1017/S002205072100036X