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Before the Great Divergence? Comparing the Yangzi Delta and the Netherlands at the Beginning of the Nineteenth Century

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  • Li, Bozhong
  • van Zanden, Jan Luiten

Abstract

This article tests recent ideas about the long-term economic development of China compared with Europe on the basis of a detailed comparison of structure and level of GDP in part of the Yangzi delta and the Netherlands in the 1820s. We find that Dutch GDP per capita was almost twice as high as in the Yangzi delta. Agricultural productivity there was at about the same level as in the Netherlands (and England), but large productivity gaps existed in industry and services. We attempt to explain this concluding that differences in factor costs are probably behind disparities in labor productivity.

Suggested Citation

  • Li, Bozhong & van Zanden, Jan Luiten, 2012. "Before the Great Divergence? Comparing the Yangzi Delta and the Netherlands at the Beginning of the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 72(4), pages 956-989, December.
    • Handle: RePEc:cup:jechis:v:72:y:2012:i:04:p:956-989_00
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    References listed on IDEAS

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    1. Robert C. Allen, 2009. "Agricultural productivity and rural incomes in England and the Yangtze Delta, c.1620–c.18201," Economic History Review, Economic History Society, vol. 62(3), pages 525-550, August.
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    6. Robert Allen & Robert C. Allen, 2007. "Wages, Prices, and Living Standards in China, Japan, and Europe, 1738-1925," Economics Series Working Papers 316, University of Oxford, Department of Economics.
    7. van Zanden, Jan Luiten & van Tielhof, Milja, 2009. "Roots of growth and productivity change in Dutch shipping industry, 1500-1800," Explorations in Economic History, Elsevier, vol. 46(4), pages 389-403, October.
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    More about this item

    JEL classification:

    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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