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The Rise of Europe - Atlantic Trade & Growth

Ever wondered how Atlantic trade transformed Europe between 1500 and 1850? Dive into the fascinating journey of institutional change and economic growth driven by colonialism and long-distance oceanic trade. Discover how merchant power reshaped societies and fueled unprecedented development!

Frequently Asked Questions (FAQ)

  1. What is the central hypothesis explored in the research about the Rise of Europe? The research investigates how the growth of Atlantic trade after 1500 influenced the economic and institutional development of Western Europe. It argues that this trade created new economic opportunities, empowering merchant groups who pushed for institutional changes that fostered economic growth. These changes included stronger property rights, constraints on the executive, and more secure contract enforcement, creating a “quasi-capitalist” environment.

  2. How does the study measure the impact of Atlantic trade on economic growth? The research uses regression analysis to quantify the relationship between Atlantic trade and economic growth, examining urbanization and GDP per capita. It employs various measures of trade involvement, including dummy variables for Atlantic traders and the ratio of Atlantic coastline to land area. The analysis controls for other factors such as Roman heritage, latitude, wars, and religion.

  3. Did all Western European countries benefit equally from Atlantic trade? No. The positive effects were concentrated in countries with greater involvement in Atlantic trade, such as Britain, the Netherlands, France, Spain, and Portugal. Other nations with Atlantic access, like Belgium and Denmark, did not benefit as much due to less active engagement in long-distance trade.

  4. Was the growth in Atlantic nations solely driven by growth in Atlantic ports? While Atlantic ports saw tremendous growth, the impact extended beyond port cities. Other cities within Atlantic trading nations also experienced significant growth due to secondary trade and the diffusion of institutional improvements.

  5. Did pre-existing institutions matter for how countries responded to Atlantic trade? Yes. The impact of Atlantic trade was stronger in countries where initial institutions were less “extractive” and allowed for the empowerment of new merchant groups. The Italian city-states, with their oligarchic structures, provide a counter-example, hindering the rise of new merchants.

  6. How did the study measure institutional quality? The research uses historical data to construct measures of institutional quality, focusing on “constraint on the executive” and “protection for capital.” It utilizes coding rules from the Polity IV dataset and historical accounts to assess the security of property rights and contract enforcement mechanisms.

  7. What evidence is presented to link Atlantic trade to institutional change? The research demonstrates a positive correlation between Atlantic trade activity and improvements in institutional quality. Nations engaged in Atlantic trade experienced greater constraints on executive power and increased protection for capital, supporting the argument that new merchant groups sought and achieved institutional reforms.

  8. What are the sources used to estimate Atlantic trade levels? The research constructs estimates of Atlantic trade levels by combining data from multiple sources, including de Vries (2002), Tracy (1990), Davis (1962), and Steensgaard (1974). It standardizes these estimates by converting them into “voyage-equivalents” based on the carrying capacity of a typical long-distance sailing ship.

Resources & Further Watching

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Youtube Hashtags

#economicgrowth #europeanhistory #tradehistory #economics #colonialism #historicaleconomics #economicdevelopment #historyofeurope #atlantictrade #institutions

Youtube Keywords

economic growth european history trade history economics atlantic trade institutional change colonialism merchant power historical economics trade impact economic development history of europe rise of europe property rights constraints on executive urbanization gdp per capita acemoglu johnson robinson western europe economic history long-distance trade

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