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'The Great Divergence' Revisited: The Case of Bengal in Early Modern Times

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  • Indrajit Ray

Abstract

This study contributes to the literature on the 'Great Divergence' by analysing the historical roots of the economic slowdown in Bengal. It offers a critique of existing hypotheses insofar as they fail to account for the experience of Bengal sufficiently. In particular, emphasis on demographic-ecological crisis as an explanation of Asian regions falling behind seems inapt for Bengal. The paper proposes an alternative theoretical framework based on Adam Smith's understanding of pre-modern process of economic development, and especially the role of capital inflows. This alternative is tested against a detailed analysis of monetary and fiscal trends in early modern Bengal.

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  • Indrajit Ray, 2015. "'The Great Divergence' Revisited: The Case of Bengal in Early Modern Times," Economic History of Developing Regions, Taylor & Francis Journals, vol. 30(2), pages 125-156, December.
    • Handle: RePEc:taf:rehdxx:v:30:y:2015:i:2:p:125-156
    DOI: 10.1080/20780389.2015.1071662
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