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States and Development: Early Modern India, China, and the Great Divergence

In: Economic History of Warfare and State Formation

Author

Listed:
  • Bishnupriya Gupta

    (University of Warwick)

  • Debin Ma

    (London School of Economics)

  • Tirthankar Roy

    (London School of Economics)

Abstract

Can differences in state capacity explain the Great Divergence between Asia and Europe? Evidence from India and China suggests that customary property rights provided de facto rights to land and community ties substituted for de jure property rights in mercantile activities. Economic activity did not face an undue risk of expropriation. China and India generated lower fiscal revenue per capita compared to Europe. We explain the big difference in revenue per capita between the two Asian countries and England in the early modern period. In terms of the differences in the threat of internal and external conflicts. The large empires in Asia faced a disproportionate threat of internal rebellions and traded off fiscal capacity for appeasement of local ruling groups and their military support in external conflicts.

Suggested Citation

  • Bishnupriya Gupta & Debin Ma & Tirthankar Roy, 2016. "States and Development: Early Modern India, China, and the Great Divergence," Studies in Economic History, in: Jari Eloranta & Eric Golson & Andrei Markevich & Nikolaus Wolf (ed.), Economic History of Warfare and State Formation, pages 51-69, Springer.
    • Handle: RePEc:spr:stechp:978-981-10-1605-9_2
    DOI: 10.1007/978-981-10-1605-9_2
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    Citations

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    Cited by:

    1. Ticku, R. & Shrivastava, A. & Iyer, S., 2018. "Economic Shocks and Temple Desecrations in Medieval India," Cambridge Working Papers in Economics 1862, Faculty of Economics, University of Cambridge.
    2. Mark Dincecco & James Fenske & Anil Menon & Shivaji Mukherjee, 2022. "Pre-Colonial Warfare and Long-Run Development in India," The Economic Journal, Royal Economic Society, vol. 132(643), pages 981-1010.
    3. Ma, Debin & Chen, Shuo, 2020. "States and Wars: China’s Long March towards Unity and its Consequences, 221 BC – 1911 AD," CEPR Discussion Papers 15187, C.E.P.R. Discussion Papers.
    4. Shuo, Chen & Ma, Debin, 2020. "States and Wars: China’s Long March towards Unity and its Consequences, 221 BC – 1911 AD," CAGE Online Working Paper Series 505, Competitive Advantage in the Global Economy (CAGE).

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