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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, Mikołaj

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.

Suggested Citation

  • Malinowski, Mikołaj, 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. Albers, Hakon & Pfister, Ulrich, 2023. "State formation and market integration: Germany, 1780–1830," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 403-421.
    3. Leonor Freire Costa & António Henriques & Nuno Palma, 2022. "Anatomy of a Premodern State," Economics Discussion Paper Series 2208, Economics, The University of Manchester, revised May 2024.
    4. 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.
    5. 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.
    6. Alberto Bisin & Giovanni Federico, 2021. "Merger or Acquisition? Introduction to the Handbook of Historical Economics," NBER Working Papers 28786, National Bureau of Economic Research, Inc.
    7. 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.

    More about this item

    JEL classification:

    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913

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