9-30-08_Lecture_Notes

9-30-08_Lecture_Notes - Economics 3230 Development of the...

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Economics 3230 (9/30/08) Development of the upper south into 3 periods - up to 1620 - 1620 to 1680 ----first long growth cycle of tobacco in economy - 1680 to 1715 slump ----- - 1715 – second growth phase during slump – saturation and slowing in productivity first is clearly staple driven growth in second: - expansion of demand in Europe - some increase in labor productivity (output in pounds of tobacco per worker) – reflects learning by doing and better organization in the labor force - reduction in distribution costs (cost of getting tobacco from the fields to the demander) - structure of the Virginia economy (plantation society established and other exports establish – grain, flour, and bread for the upper south) - sources of immigration – Britain to Africa – unforced to forced - planters are much more entrepreneurial in 17 th century tobacco was consumed a lot in Britain and re-exported after 1700 the re-export trade takes off due to demand from france good tobacco at a relatively low price changes on the Virginia side: - successful implementation of inspection laws - 10% rejected upon inspection - innovations in tobacco handling (infiltration of Scottish merchants into the
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This note was uploaded on 02/01/2009 for the course ECON 3230 taught by Professor Tomlyons during the Fall '08 term at Cornell.

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9-30-08_Lecture_Notes - Economics 3230 Development of the...

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