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The Change Towards Modern Growth: Proximate Causes

Author

Listed:
  • Bas Van Leeuwen

    (International Institute of Social History)

  • Dmitry Didenko

    (Russian Presidential Academy of National Economy and Public Administration)

  • Matteo Calabrese

    (Bocconi University)

  • Meimei Wang

    (Institute of Economics)

Abstract

In this chapter, we consider which causes of growth (e.g. human capital, taxation, colonies) were the main factors in moving to modern (sustained) economic growth. The proximate factors are of a Smithian (commercialization) and Northian (institutional change) nature. Unsurprisingly, the importance of each factor varies by country. However, trade/empire, urbanization, forced and free labour, and government power were important in both positive and negative ways, depending on the economic and political structure of the country in question. Noticeable are institutions, which played an interaction role, especially when the institutional framework of a country relied on the coexistence of both “Eastern” and “Western” institutions. Further, we discuss the effect of the demographic transition on human capital formation. After some time, human capital growth began to depend on technology (i.e. increasing income) rather than on fertility, thus obscuring the role of the latter in economic growth.

Suggested Citation

  • Bas Van Leeuwen & Dmitry Didenko & Matteo Calabrese & Meimei Wang, 2025. "The Change Towards Modern Growth: Proximate Causes," Frontiers in Economic History,, Springer.
    • Handle: RePEc:spr:frochp:978-3-031-97043-6_4
    DOI: 10.1007/978-3-031-97043-6_4
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