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The Consequences of Radical Reform: The French Revolution

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  • Acemoglu, Daron
  • Cantoni, Davide
  • Johnson, Simon
  • Robinson, James A

Abstract

The French Revolution of 1789 had a momentous impact on neighboring countries. The French Revolutionary armies during the 1790s and later under Napoleon invaded and controlled large parts of Europe. Together with invasion came various radical institutional changes. French invasion removed the legal and economic barriers that had protected the nobility, clergy, guilds, and urban oligarchies and established the principle of equality before the law. The evidence suggests that areas that were occupied by the French and that underwent radical institutional reform experienced more rapid urbanization and economic growth, especially after 1850. There is no evidence of a negative effect of French invasion. Our interpretation is that the Revolution destroyed (the institutional underpinnings of) the power of oligarchies and elites opposed to economic change; combined with the arrival of new economic and industrial opportunities in the second half of the 19th century, this helped pave the way for future economic growth. The evidence does not provide any support for several other views, most notably, that evolved institutions are inherently superior to those 'designed'; that institutions must be 'appropriate' and cannot be 'transplanted'; and that the civil code and other French institutions have adverse economic effects.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7245.

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Date of creation: Mar 2009
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Handle: RePEc:cpr:ceprdp:7245

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Keywords: civil code; democracy; guilds; institutions; oligarchy; political economy;

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References

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  1. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, . "Law and Finance," Working Paper 19451, Harvard University OpenScholar.
  2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
  3. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
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  8. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
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  12. Acemoglu, Daron & Robinson, James A, 2006. "Persistence of Power, Elites and Institutions," CEPR Discussion Papers 5603, C.E.P.R. Discussion Papers.
  13. Ogilvie, S., 2007. "Can We Rehabilitate the Guilds? A Sceptical Re-Appraisal," Cambridge Working Papers in Economics 0745, Faculty of Economics, University of Cambridge.
  14. Eugene White, 1999. "France and the Failure to Modernize Macroeconomic Institutions," Departmental Working Papers 199904, Rutgers University, Department of Economics.
  15. Kisch, Herbert, 1989. "From Domestic Manufacture to Industrial Revolution: The Case of the Rhineland Textile Districts," OUP Catalogue, Oxford University Press, number 9780195051117, September.
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  1. History matters
    by chris dillow in Stumbling and Mumbling on 2011-12-20 14:47:21
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