These economic institutions determined by the

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Unformatted text preview: xpansion Did Major issue in early modern Europe: security of property rights for merchants and control of entry into overseas trade. These economic institutions determined by the distribution of political power. In absolutist monarchies, less security of property rights and crown monopoly of foreign trade. Development of constraints in Britain and the Netherlands related to con‡ict between merchants and Crown (in the case of the Netherlands the Hapsburgs). Institutional change driven by opening of Atlantic trade which enriched and empowered those with an interest in restraining power – English Civil War and Glorious Revolution, Dutch Revolt. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and Historical Analysis: L September 30, 2009 23 / 29 Why did Constitutional Regimes Arise only in some places? Thus rise of Western Europe was in fact the rise of Atlantic Europe. But not all Atlantic nations gained. Changing environment: opening of trade routes to New World and Asia via the Atlantic. Di¤erent e¤ects of this new economic opportunity depending on economic and political institutions In countries with access to the Atlantic and with some degree of entry into foreign trade (i.e., Britain and the Netherlands): new groups of merchants enriched. In countries with tight crown monopoly of trade (i.e., Spain, Portugal, France), the monarchy and its allies became the main bene…ciaries For countries without access to the Atlantic; no direct bene…ts and indirect costs through diversion of trade James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and Historical Analysis: L September 30, 2009 24 / 29 Institutional Change The enrichment of new groups outside of the Royal coalition was crucial. They had vested interest is more secure property rights, restraining monopolies. The enrichment of these groups through inter-Oceanic trade strengthened their resources and political power and culminated in the Dutch Revolt and in Britain the Civil War and Glorious Revolution. James A. Robinson (Harvard) The Emergence of Modern...
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.

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