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What Drives the Formation and Persistent Development of Territorial States since 1 AD?

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  • James, Ang

Abstract

The importance of the length of state history for understanding variations in income levels, growth rates, quality of institutions and income distributions across countries has received a lot of attention in the recent literature on long-run comparative development. The standard approach, however, is to regard statehood as a given. The main objective of this paper is to explore the determinants of statehood and to uncover its deep historical roots. The empirical analysis shows that early transition to fully-fledged agricultural production, adoption of state-of-the-art military innovations, and more opportunity for economic interaction with the regional economic leader all play a catalytic role in the rise and development of the state. However, the hypothesized positive effect of lower cultural diffusion barriers across borders on the rise of statehood is found to be lacking.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 42357.

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Date of creation: 31 Oct 2012
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Handle: RePEc:pra:mprapa:42357

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Keywords: state antiquity; nation formation; comparative economic development;

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References

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  1. Enrico Spolaore & Romain Wacziarg, 2006. "The Diffusion of Development," NBER Working Papers 12153, National Bureau of Economic Research, Inc.
  2. Louis Putterman, 2008. "Agriculture, Diffusion and Development: Ripple Effects of the Neolithic Revolution," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 75(300), pages 729-748, November.
  3. Louis Putterman & David N. Weil, 2008. "Post-1500 Population Flows and the Long Run Determinants of Economic Growth and Inequality," NBER Working Papers 14448, National Bureau of Economic Research, Inc.
  4. Ang, James B., 2013. "Institutions and the long-run impact of early development," Journal of Development Economics, Elsevier, Elsevier, vol. 105(C), pages 1-18.
  5. Timothy Besley & Torsten Persson, 2009. "State Capacity, Conflict and Development," STICERD - Economic Organisation and Public Policy Discussion Papers Series, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE 010, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  6. Areendam Chanda & Louis Putterman, 2004. "Early Starts, Reversals and Catchup in The Process of Economic Development," Working Papers 2004-04, Brown University, Department of Economics.
  7. Besley, Timothy J. & Persson, Torsten, 2007. "The Origins of State Capacity: Property Rights, Taxation, and Politics," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6370, C.E.P.R. Discussion Papers.
  8. Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc.
  9. Diego Comin & William Easterly & Erick Gong, 2010. "Was the Wealth of Nations Determined in 1000 BC?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 65-97, July.
  10. Timothy Besley & Torsten Persson, 2011. "Fragile States and Development Policy," STICERD - Economic Organisation and Public Policy Discussion Papers Series, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE 022, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  11. Bockstette, Valerie & Chanda, Areendam & Putterman, Louis, 2002. " States and Markets: The Advantage of an Early Start," Journal of Economic Growth, Springer, Springer, vol. 7(4), pages 347-69, December.
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Cited by:
  1. James, Ang, 2012. "Institutions and the Long-run Impact of Early Development," MPRA Paper 42199, University Library of Munich, Germany.
  2. James B. Ang, 2013. "Are modern financial systems shaped by state antiquity?," Development Research Unit Working Paper Series, Monash University, Department of Economics 38-13, Monash University, Department of Economics.

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