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Completing a Financial Revolution: The Finance of the Dutch East India Trade and the Rise of the Amsterdam Capital Market, 1595–1612

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  • GELDERBLOM, OSCAR
  • JONKER, JOOST

Abstract

The article analyzes the evolution of the Amsterdam capital market as a consequence of Dutch overseas expansion and the introduction of transferable VOC shares. Offering investors prospects of speculative gains without serious loss of liquidity, these instruments created a booming secondary market offering a wide range of allied credit techniques. By 1609 this market had become sufficiently strong to dictate terms for new public debt issues. These findings show that, contrary to commonly held notions about the emergence of secondary markets, private finance took precedence over public finance in the Dutch Republic.

Suggested Citation

  • Gelderblom, Oscar & Jonker, Joost, 2004. "Completing a Financial Revolution: The Finance of the Dutch East India Trade and the Rise of the Amsterdam Capital Market, 1595–1612," The Journal of Economic History, Cambridge University Press, vol. 64(3), pages 641-672, September.
    • Handle: RePEc:cup:jechis:v:64:y:2004:i:03:p:641-672_00
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    Cited by:

    1. Andrianova, Svetlana & Demetriades, Panicos & Xu, Chenggang, 2011. "Political Economy Origins of Financial Markets in Europe and Asia," World Development, Elsevier, vol. 39(5), pages 686-699, May.
    2. de Jong, A. & Jonker, J. & Roëll, A., 2013. "Dutch Corporate Finance, 1602-1850," ERIM Report Series Research in Management ERS-2013-008-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    3. Emmanouil M. L. Economou & Nicholas C. Kyriazis, 2015. "The First Globalized Economy: Privateers, Joint-Stock Companies, Commerce and the Rise of the United Provinces," International Journal of Social Science Research, Macrothink Institute, vol. 3(2), pages 86-106, September.
    4. Leonor Freire Costa & Maria Manuela Rocha & Paulo B. Brito, 2018. "The alchemy of gold: interest rates, money stock, and credit in eighteenth‐century Lisbon," Economic History Review, Economic History Society, vol. 71(4), pages 1147-1172, November.
    5. Oscar Gelderblom & Joost Jonker, 2013. "Early Capitalism in the Low Countries," Working Papers 0041, Utrecht University, Centre for Global Economic History.
    6. Cull, Robert & Davis, Lance E. & Lamoreaux, Naomi R. & Rosenthal, Jean-Laurent, 2006. "Historical financing of small- and medium-size enterprises," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 3017-3042, November.
    7. van Bavel, Bas, 2016. "The Invisible Hand?: How Market Economies have Emerged and Declined Since AD 500," OUP Catalogue, Oxford University Press, number 9780199608133.
    8. Nicholas Kyriazis & Theodore Metaxas, 2011. "Path dependence, change and the emergence of the first joint-stock companies," Business History, Taylor & Francis Journals, vol. 53(3), pages 363-374.
    9. Carlos, Ann M. & Fletcher, Erin & Neal, Larry, 2012. "Share Portfolios and Risk Management in the Early Years of Financial Capitalism: London 1690-1730," CEI Working Paper Series 2012-12, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    10. Gelderblom, O. & de Jong, A. & Jonker, J., 2010. "An Admiralty for Asia: Isaac le Maire and conflicting conceptions about the corporate governance of the VOC," ERIM Report Series Research in Management ERS-2010-026-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. van Bochove, Christiaan & Boerner, Lars & Quint, Daniel, 2012. "Anglo-Dutch premium auctions in eighteenth-century Amsterdam," Discussion Papers 2012/3, Free University Berlin, School of Business & Economics.
    12. Kuran, Timur, 2009. "Explaining the economic trajectories of civilizations: The systemic approach," Journal of Economic Behavior & Organization, Elsevier, vol. 71(3), pages 593-605, September.

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