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Divided We Stand, United We Fall: The Hume-North-Jones Mechanism For The Rise Of Europe

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  • Cem Karayalçin

Abstract

The "great divergence" between Europe and the rest of the world occurred relatively recently. What enabled Europe, with all its laggards, to dominate the previously successful Eastern economies? This article emphasizes one important mechanism, highlighting the contrast between the European states system and Eastern empires. Political competition for a mobile tax base in a states system forces rulers to provide relatively more secure property rights. By effectively limiting the "exit" options of the ruled, an empire rewards its ruler with a captive tax base that can be subjected to higher levels of expropriation. As a result, the states system encourages faster capital accumulation and growth. Copyright © 2008 the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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  • Cem Karayalçin, 2008. "Divided We Stand, United We Fall: The Hume-North-Jones Mechanism For The Rise Of Europe," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(3), pages 973-997, August.
    • Handle: RePEc:ier:iecrev:v:49:y:2008:i:3:p:973-997
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    1. The rise of Europe, the standstill of Asia
      by Economic Logician in Economic Logic on 2008-08-22 16:18:00

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    2. Kenneth S. Chan & Jean-Pierre Laffargue, 2014. "The Growth and Decline of the Modern Sector and the Merchant Class in Imperial China," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 13-28, February.
    3. Karayalcin, Cem & Ulubasoglu, Mehmet Ali, 2009. "Romes without empires: urban concentration, political competition, and economic growth," Working Papers eco_2009_18, Deakin University, Department of Economics.
    4. Chu, Angus & Peretto, Pietro & Furukawa, Yuichi, 2023. "Evolution from political fragmentation to a unified empire in a Malthusian economy," MPRA Paper 118253, University Library of Munich, Germany.
    5. Angus Chu, 2010. "Nation states vs. united empire: Effects of political competition on economic growth," Public Choice, Springer, vol. 145(1), pages 181-195, October.
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    8. Karayalcin, Cem & Ulubaşoğlu, Mehmet Ali, 2020. "Romes without empires: Urban concentration, political competition, and economic development," European Journal of Political Economy, Elsevier, vol. 63(C).
    9. Parag Waknis, 2011. "Endogenous Monetary Policy: A Leviathan Central Bank in a Lagos-Wright Economy," Working papers 2011-20, University of Connecticut, Department of Economics.

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