IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_5233.html
   My bibliography  Save this paper

The Clan and the Corporation: Sustaining Cooperation in China and Europe

Author

Listed:
  • Avner Greif
  • Guido Tabellini

Abstract

Over the last millennium, the clan and the corporation have been the loci of cooperation in China and Europe respectively. This paper examines - analytically and historically - the cultural and institutional co-evolution that led to this bifurcation. We highlight that groups with which individuals identify are basic units of cooperation. Such loyalty groups influence institutional development because intra-group moral commitment reduces enforcement cost implying a comparative advantage in pursuing collective actions. Loyalty groups perpetuate due to positive feedbacks between morality, institutions, and the implied pattern of cooperation.

Suggested Citation

  • Avner Greif & Guido Tabellini, 2015. "The Clan and the Corporation: Sustaining Cooperation in China and Europe," CESifo Working Paper Series 5233, CESifo.
    • Handle: RePEc:ces:ceswps:_5233
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp5233.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Guinnane, Timothy & Harris, Ron & Lamoreaux, Naomi R. & Rosenthal, Jean-Laurent, 2007. "Putting the Corporation in its Place," Enterprise & Society, Cambridge University Press, vol. 8(3), pages 687-729, September.
    2. Hans-Joachim Voth, 2013. "The Three Horsemen of Riches: Plague, War, and Urbanization in Early Modern Europe," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(2), pages 774-811.
    3. Davide Cantoni & Noam Yuchtman, 2014. "Medieval Universities, Legal Institutions, and the Commercial Revolution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 823-887.
    4. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
    5. Lu, Jiangyong & Tao, Zhigang, 2010. "Determinants of entrepreneurial activities in China," Journal of Business Venturing, Elsevier, vol. 25(3), pages 261-273, May.
    6. John Friedmann, 2007. "Reflections on Place and Place‐making in the Cities of China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 31(2), pages 257-279, June.
    7. Greif,Avner, 2006. "Institutions and the Path to the Modern Economy," Cambridge Books, Cambridge University Press, number 9780521480444, October.
    8. Mitchel Y. Abolafia (ed.), 2005. "Markets," Books, Edward Elgar Publishing, number 2788.
    9. Greif, Avner & Iyigun, Murat, 2013. "Social Organizations, Violence & Modern Growth," IZA Discussion Papers 7377, Institute of Labor Economics (IZA).
    10. Nathan Nunn, 2012. "Culture and the Historical Process," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(S1), pages 108-126.
    11. Richardson, Gary, 2004. "Guilds, laws, and markets for manufactured merchandise in late-medieval England," Explorations in Economic History, Elsevier, vol. 41(1), pages 1-25, January.
    12. Deng, Kent, 2000. "A critical survey of recent research in Chinese economic history," LSE Research Online Documents on Economics 638, London School of Economics and Political Science, LSE Library.
    13. Guido Tabellini, 2008. "The Scope of Cooperation: Values and Incentives," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 905-950.
    14. Daniel Bernhofen & Markus Eberhardt & Jianan Li & Stephen Morgan, 2015. "Assessing Market (Dis)Integration in Early Modern China and Europe," Discussion Papers 2015-12, University of Nottingham, GEP.
    15. Saumitra Jha, 2015. "Financial Asset Holdings and Political Attitudes: Evidence from Revolutionary England," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1485-1545.
    16. Whyte, Martin King, 1996. "The Chinese Family and Economic Development: Obstacle or Engine?," Economic Development and Cultural Change, University of Chicago Press, vol. 45(1), pages 1-30, October.
    17. Buchan, Nancy & Croson, Rachel, 2004. "The boundaries of trust: own and others' actions in the US and China," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 485-504, December.
    18. Greif, Avner, 1994. "Cultural Beliefs and the Organization of Society: A Historical and Theoretical Reflection on Collectivist and Individualist Societies," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 912-950, October.
    19. Kent G. Deng, 2000. "A critical survey of recent research in Chinese economic history," Economic History Review, Economic History Society, vol. 53(1), pages 1-28, February.
    20. Debin Ma, 2004. "Growth, institutions and knowledge: a review and reflection on the historiography of 18th–20th century China," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 44(3), pages 259-277, November.
    21. González De Lara, Yadira, 2008. "The secret of Venetian success: a public-order, reputation-based institution," European Review of Economic History, Cambridge University Press, vol. 12(3), pages 247-285, December.
    22. Avner Greif, 2006. "History Lessons: The Birth of Impersonal Exchange: The Community Responsibility System and Impartial Justice," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 221-236, Spring.
    23. Lars Boerner & Daniel Quint, 2023. "Medieval Matching Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(1), pages 23-56, February.
    24. Carol H. Shiue & Wolfgang Keller, 2007. "Markets in China and Europe on the Eve of the Industrial Revolution," American Economic Review, American Economic Association, vol. 97(4), pages 1189-1216, September.
    25. Claude Menard & Mary M. Shirley (ed.), 2005. "Handbook of New Institutional Economics," Springer Books, Springer, number 978-0-387-25092-2, February.
    26. Li, Hongbin & Meng, Lingsheng & Wang, Qian & Zhou, Li-An, 2008. "Political connections, financing and firm performance: Evidence from Chinese private firms," Journal of Development Economics, Elsevier, vol. 87(2), pages 283-299, October.
    27. Kumar, Krishna B. & Matsusaka, John G., 2009. "From families to formal contracts: An approach to development," Journal of Development Economics, Elsevier, vol. 90(1), pages 106-119, September.
    28. Ekelund, Robert B. & Hebert, Robert F. & Tollison, Robert D. & Anderson, Gary M. & Davidson, Audrey B., 1997. "Sacred Trust: The Medieval Church as an Economic Firm," OUP Catalogue, Oxford University Press, number 9780195103373.
    29. Rosenthal, Jean-Laurent & Wong, R. Bin, 2011. "Before and Beyond Divergence: The Politics of Economic Change in China and Europe," Economics Books, Harvard University Press, number 9780674057913, Spring.
    30. Avner Greif & Murat Iyigun, 2013. "Social Organizations, Violence, and Modern Growth," American Economic Review, American Economic Association, vol. 103(3), pages 534-538, May.
    31. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995, September.
    32. Oscar Gelderblom, 2013. "Cities of Commerce: The Institutional Foundations of International Trade in the Low Countries, 1250-1650," Economics Books, Princeton University Press, edition 1, number 10139.
    33. Jun Su & Jia He, 2010. "Does Giving Lead to Getting? Evidence from Chinese Private Enterprises," Journal of Business Ethics, Springer, vol. 93(1), pages 73-90, April.
    34. de Roover, Florence Edler, 1945. "Early Examples of Marine Insurance," The Journal of Economic History, Cambridge University Press, vol. 5(2), pages 172-200, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tabellini, Guido & Greif, Avner, 2012. "The Clan and the City: Sustaining Cooperation in China and Europe," CEPR Discussion Papers 9072, C.E.P.R. Discussion Papers.
    2. Johnson, Noel D. & Koyama, Mark, 2017. "States and economic growth: Capacity and constraints," Explorations in Economic History, Elsevier, vol. 64(C), pages 1-20.
    3. Greif, Avner & Iyigun, Murat & Sasson, Diego, 2011. "Risk, Institutions and Growth: Why England and Not China?," IZA Discussion Papers 5598, Institute of Labor Economics (IZA).
    4. Lars Boerner & Daniel Quint, 2023. "Medieval Matching Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(1), pages 23-56, February.
    5. Boerner, Lars, 2016. "Medieval market making brokerage regulations in Central Western Europe, ca. 1250-1700," Economic History Working Papers 66834, London School of Economics and Political Science, Department of Economic History.
    6. Scott E. Masten & Jens Prüfer, 2014. "On the Evolution of Collective Enforcement Institutions: Communities and Courts," The Journal of Legal Studies, University of Chicago Press, vol. 43(2), pages 359-400.
    7. Loren Brandt & Debin Ma & Thomas G. Rawski, 2014. "From Divergence to Convergence: Reevaluating the History behind China's Economic Boom," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 45-123, March.
    8. Diego Puga & Daniel Trefler, 2014. "International Trade and Institutional Change: Medieval Venice’s Response to Globalization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 753-821.
    9. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 263-315, Elsevier.
    10. Avner Greif & Guido Tabellini, 2010. "Cultural and Institutional Bifurcation: China and Europe Compared," American Economic Review, American Economic Association, vol. 100(2), pages 135-140, May.
    11. Karaja, Elira & Rubin, Jared, 2022. "Θ The cultural transmission of trust norms: Evidence from a lab in the field on a natural experiment," Journal of Comparative Economics, Elsevier, vol. 50(1), pages 1-19.
    12. Ogilvie, Sheilagh & Carus, A.W., 2014. "Institutions and Economic Growth in Historical Perspective," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 8, pages 403-513, Elsevier.
    13. Johnson, Noel D. & Koyama, Mark, 2017. "Jewish communities and city growth in preindustrial Europe," Journal of Development Economics, Elsevier, vol. 127(C), pages 339-354.
    14. Mika Kallioinen, 2017. "Inter‐communal institutions in medieval trade," Economic History Review, Economic History Society, vol. 70(4), pages 1131-1152, November.
    15. Natkhov, T. & Polishchuk, L., 2017. "Political Economy of Institutions and Development: The Importance of Being Inclusive. Reflection on "Why Nations Fail" by D. Acemoglu and J. Robinson. Part I. Institutions and Economic Devel," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 12-38.
    16. Ran Abramitzky, 2015. "Economics and the Modern Economic Historian," NBER Working Papers 21636, National Bureau of Economic Research, Inc.
    17. Chaudhary, Latika & Rubin, Jared & Iyer, Sriya & Shrivastava, Anand, 2020. "Culture and colonial legacy: Evidence from public goods games," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 107-129.
    18. Greif, Avner & Tadelis, Steven, 2010. "A theory of moral persistence: Crypto-morality and political legitimacy," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 229-244, September.
    19. Iyigun, Murat & Rubin, Jared, 2017. "The Ideological Roots of Institutional Change," IZA Discussion Papers 10703, Institute of Labor Economics (IZA).
    20. 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.

    More about this item

    JEL classification:

    • N00 - Economic History - - General - - - General
    • A10 - General Economics and Teaching - - General Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_5233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.