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Economic growth before the Industrial Revolution: Rural production and guilds in the European Little Divergence

Author

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  • Rota, Mauro
  • Spinesi, Luca

Abstract

This paper explains how England became a high-income economy from the 15th to 18th centuries. The appropriate level of natural land suitability in the northern region of England before the Industrial Revolution was pivotal in weakening guilds’ power and the diffusion of rural manufacturing. Unlike other European countries, those elements turned into a more efficient allocation of capital between cities and the rural areas and a more efficient shift of labor time from agriculture to manufacturing in the countryside, resulting in a higher income per capita by 1750.

Suggested Citation

  • Rota, Mauro & Spinesi, Luca, 2024. "Economic growth before the Industrial Revolution: Rural production and guilds in the European Little Divergence," Economic Modelling, Elsevier, vol. 130(C).
    • Handle: RePEc:eee:ecmode:v:130:y:2024:i:c:s0264999323004029
    DOI: 10.1016/j.econmod.2023.106590
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    More about this item

    Keywords

    High-wage economy; Pre-industrial economy; Little divergence; Rural manufacturing; Land suitability;
    All these keywords.

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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