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The first Great Divergence and the evolution of cross-country income inequality during the last millennium: the role of institutions and culture

Author

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  • Jakob B. Madsen
  • Eric Yan

Abstract

Using a millennium of data for 12 countries in the East and in the West, this article tests the extent to which contracting institutions, property right institutions and culture can explain economic development and the Great Divergence. It is tested whether these theories influence growth through science and technology or through human capital or channels that are independent of these two channels. It is found that culture, contracting institutions and property right institutions have all been relevant for growth and development.

Suggested Citation

  • Jakob B. Madsen & Eric Yan, 2013. "The first Great Divergence and the evolution of cross-country income inequality during the last millennium: the role of institutions and culture," Applied Economics, Taylor & Francis Journals, vol. 45(33), pages 4641-4650, November.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:33:p:4641-4650
    DOI: 10.1080/00036846.2013.795283
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    Cited by:

    1. Luciano Nakabashi & Ana Elisa Pereira, 2023. "Factors of production, productivity, institutions, and development: Evidence from Brazil," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1034-1055, May.
    2. Cabello, Matias & Rojas, Carolina, 2016. "Researchers and the Wealth of Nations," MPRA Paper 71488, University Library of Munich, Germany, revised 26 May 2016.
    3. Jeffrey A. EDWARDS & Alfredo ROMERO & Cephas NAANWAAB, 2022. "Income Inequality, The World Values Survey, And The Interaction Of Cultural Dimensions," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 22(2), pages 5-24.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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