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Population, technology and fragmentation: The European miracle revisited

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  • Lagerlöf, Nils-Petter

Abstract

The effects of political fragmentation on long-run development seem to have changed over the course of human history. Technological leaders used to be empires, but the Industrial Revolution started in the fragmented Europe. This paper sets up a model to help us think about this puzzle. There are two sets of mechanisms at play: a standard scale effect, which benefits unified regions, since technology is a non-rivalrous good; and several competition effects, both negative (like wasteful armies) and positive (incentives to invest in new technologies). We apply the model to analyze the preindustrial divergence between China and Europe.

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  • Lagerlöf, Nils-Petter, 2014. "Population, technology and fragmentation: The European miracle revisited," Journal of Development Economics, Elsevier, vol. 108(C), pages 87-105.
    • Handle: RePEc:eee:deveco:v:108:y:2014:i:c:p:87-105
    DOI: 10.1016/j.jdeveco.2014.01.007
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    2. Chu, Angus C., 2025. "Prehistoric shuttle dispersals in a Malthusian economy," MPRA Paper 126606, University Library of Munich, Germany.
    3. Ko, Chiu Yu & Koyama, Mark & Sng, Tuan-Hwee, 2014. "Unified China; Divided Europe," MPRA Paper 60418, University Library of Munich, Germany.
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    5. Klaus Desmet & Avner Greif & Stephen L. Parente, 2020. "Spatial competition, innovation and institutions: the Industrial Revolution and the Great Divergence," Journal of Economic Growth, Springer, vol. 25(1), pages 1-35, March.
    6. Chu, Angus & Peretto, Pietro & Furukawa, Yuichi, 2023. "Evolution from political fragmentation to a unified empire in a Malthusian economy," MPRA Paper 118253, University Library of Munich, Germany.
    7. Chu, Angus C. & Peretto, Pietro F. & Furukawa, Yuichi, 2024. "Political fragmentation versus a unified empire in a Malthusian economy," Journal of Economic Behavior & Organization, Elsevier, vol. 222(C), pages 284-293.
    8. Chu, Angus C. & Wang, Xilin, 2025. "Early state formation in a Malthusian economy," MPRA Paper 126926, University Library of Munich, Germany.
    9. Baskaran, Thushyanthan & Blesse, Sebastian, 2019. "Subnational border reforms and economic development in Africa," ZEW Discussion Papers 18-027, ZEW - Leibniz Centre for European Economic Research, revised 2019.

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