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Foreign threats, technological progress and the rise and decline of Imperial China

Author

Listed:
  • Kenneth S. Chan
  • Jean-Pierre Laffargue

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper addresses why technological progress occurred off-and-on in Imperial China but came to a standstill at around the time of the European Renaissance, leading to the decline of Imperial China. We suggest that the threat of war could have induced innovative activities as well as the accumulation of public capital, which led to the development of a modern sector in Imperial China. Using numerical simulation, we find a stagnated equilibrium in an agrarian economy under low threats of war and another with a high level of technological knowledge, public capital and a vibrant modern sector under strong threats. Long periods of peace would have the opposite effect. Some supportive historical evidence from urbanization is provided.

Suggested Citation

  • Kenneth S. Chan & Jean-Pierre Laffargue, 2012. "Foreign threats, technological progress and the rise and decline of Imperial China," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00686137, HAL.
    • Handle: RePEc:hal:cesptp:hal-00686137
    DOI: 10.1111/j.1468-0106.2012.00583.x
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    Cited by:

    1. 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.
    2. Zhu, Jiong & Ang, James B. & Fredriksson, Per G., 2019. "The agricultural roots of Chinese innovation performance," European Economic Review, Elsevier, vol. 118(C), pages 126-147.
    3. Takuma Kunieda & Keisuke Okada & Akihisa Shibata, 2017. "A Simple Model of Contract Enforcement Institutions," Pacific Economic Review, Wiley Blackwell, vol. 22(3), pages 410-434, August.
    4. Emmanouil M. L. Economou & Nicholas C. Kyriazis, 2016. "The Achaeans and the Europeans: An Interdisciplinary Comparison of Federations," International Journal of Social Science Research, Macrothink Institute, vol. 4(2), pages 8-23, September.

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