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Economic Consequences of State Failure—Legal Capacity, Regulatory Activity, and Market Integration in Poland, 1505–1772

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  • Malinowski, MikoÅ‚aj

Abstract

With use of innovative proxies and new annual data, I demonstrate that relatively high legal capacity and regulatory activity of the early-modern Polish parliament, the Seym, was positively associated with deeper domestic commodity market integration. Conversely, the lack of effective law-making, caused by the right of a single delegate to discontinue the Seym’s sessions, fostered market fragmentation. This indicates that early parliamentary regimes required legal capacity to harmonize domestic institutions and reduce the transaction costs. The Polish case suggests a hypothesis that the pre-1800 “Little Divergence†between European parliamentary regimes could be explained by differences in their governments’ capacities.

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  • Malinowski, MikoÅ‚aj, 2019. "Economic Consequences of State Failure—Legal Capacity, Regulatory Activity, and Market Integration in Poland, 1505–1772," The Journal of Economic History, Cambridge University Press, vol. 79(3), pages 862-896, September.
    • Handle: RePEc:cup:jechis:v:79:y:2019:i:03:p:862-896_00
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    Cited by:

    1. Broadberry, Stephen, 2021. "Accounting for the Great Divergence: Recent Findings from Historical National Accounting," CEPR Discussion Papers 15936, C.E.P.R. Discussion Papers.
    2. António Henriques & Nuno Palma, 2023. "Comparative European Institutions and the Little Divergence, 1385–1800," Journal of Economic Growth, Springer, vol. 28(2), pages 259-294, June.
    3. Albers, Hakon & Pfister, Ulrich, 2023. "State formation and market integration: Germany, 1780–1830," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 403-421.
    4. Federico, Giovanni & Bisin, Alberto, 2021. "Merger or acquisition? An introduction to the Handbook of Historical economics," CEPR Discussion Papers 15795, C.E.P.R. Discussion Papers.
    5. Leonor Freire Costa & António Henriques & Nuno Palma, 2022. "Anatomy of a Premodern State," Economics Discussion Paper Series 2208, Economics, The University of Manchester.
    6. Matthias Morys, 2022. "Has Eastern Europe Always Lagged Behind the West? Historical Evidence from Pre‐1870," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 3-21, April.
    7. CERMEÑO, Alexandra L. & SANTIAGO-Caballero, Carlos, 2023. "Closing the price gap - Von Thünen applied to wheat markets in 18th century Spain," CEI Working Paper Series 2023-01, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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