IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/15936.html
   My bibliography  Save this paper

Accounting for the Great Divergence: Recent Findings from Historical National Accounting

Author

Listed:
  • Broadberry, Stephen N

Abstract

As a result of recent work on historical national accounting, it is now possible to establish more firmly the timing of the Great Divergence of living standards between Europe and Asia in the eighteenth century. There was a European Little Divergence as Britain and the Netherlands overtook Italy and Spain, and an Asian Little Divergence as Japan overtook China and India. The Great Divergence occurred because Japan grew more slowly than Britain and the Netherlands starting from a lower level, and because of a strong negative growth trend in Qing dynasty China. A growth accounting framework is used to assess the contributions of labour, human and physical capital, land and total factor productivity. In addition to these proximate sources, the roles of institutions and geography are examined as the ultimate sources of the divergent growth patterns.

Suggested Citation

  • Broadberry, Stephen N, 2021. "Accounting for the Great Divergence: Recent Findings from Historical National Accounting," CEPR Discussion Papers 15936, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:15936
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=15936
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mikołaj Malinowski & Jan Luiten Zanden, 2017. "Income and its distribution in preindustrial Poland," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(3), pages 375-404, September.
    2. 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.
    3. de Vries, Jan, 1994. "The Industrial Revolution and the Industrious Revolution," The Journal of Economic History, Cambridge University Press, vol. 54(2), pages 249-270, June.
    4. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 857-880.
    5. Broadberry,Stephen & Fukao,Kyoji (ed.), 2021. "The Cambridge Economic History of the Modern World," Cambridge Books, Cambridge University Press, number 9781107159457.
    6. Voth, Hans-Joachim, 2001. "The Longest Years: New Estimates Of Labor Input In England, 1760–1830," The Journal of Economic History, Cambridge University Press, vol. 61(4), pages 1065-1082, December.
    7. Joerg Baten & Jan Zanden, 2008. "Book production and the onset of modern economic growth," Journal of Economic Growth, Springer, vol. 13(3), pages 217-235, September.
    8. Pritchett, Lant, 2000. "Understanding Patterns of Economic Growth: Searching for Hills among Plateaus, Mountains, and Plains," The World Bank Economic Review, World Bank Group, vol. 14(2), pages 221-250, May.
    9. Allen,Robert C., 2009. "The British Industrial Revolution in Global Perspective," Cambridge Books, Cambridge University Press, number 9780521868273, October.
    10. Jane Humphries & Jacob Weisdorf, 2019. "Unreal Wages? Real Income and Economic Growth in England, 1260–1850," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2867-2887.
    11. Carlos Álvarez-Nogal & Leandro Prados De La Escosura, 2013. "The rise and fall of Spain (1270–1850)," Economic History Review, Economic History Society, vol. 66(1), pages 1-37, February.
    12. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    13. Broadberry, Stephen & Gupta, Bishnupriya, 2012. "India And The Great Divergence: An Anglo-Indian Comparison Of Gdp Per Capita, 1600-1871," CAGE Online Working Paper Series 81, Competitive Advantage in the Global Economy (CAGE).
    14. Palma, Nuno & Reis, Jaime, 2019. "From Convergence to Divergence: Portuguese Economic Growth, 1527–1850," The Journal of Economic History, Cambridge University Press, vol. 79(2), pages 477-506, June.
    15. Tine De Moor & Jan Luiten Van Zanden, 2010. "Girl power: the European marriage pattern and labour markets in the North Sea region in the late medieval and early modern period1," Economic History Review, Economic History Society, vol. 63(1), pages 1-33, February.
    16. Alexandra M. de Pleijt, 2018. "Human capital formation in the long run: evidence from average years of schooling in England, 1300–1900," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(1), pages 99-126, January.
    17. Broadberry,Stephen & Fukao,Kyoji (ed.), 2021. "The Cambridge Economic History of the Modern World 2 Volume Hardback Set," Cambridge Books, Cambridge University Press, number 9781108953771.
    18. Wrigley,E. A., 2010. "Energy and the English Industrial Revolution," Cambridge Books, Cambridge University Press, number 9780521131858.
    19. 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.
    20. Broadberry, Stephen & Custodis, Johann & Gupta, Bishnupriya, 2015. "India and the great divergence: An Anglo-Indian comparison of GDP per capita, 1600–1871," Explorations in Economic History, Elsevier, vol. 55(C), pages 58-75.
    21. Hanley, Susan B., 1983. "A High Standard of Living in Nineteenth-Century Japan: Fact or Fantasy?," The Journal of Economic History, Cambridge University Press, vol. 43(1), pages 183-192, March.
    22. Allen, Robert C., 2000. "Economic structure and agricultural productivity in Europe, 1300–1800," European Review of Economic History, Cambridge University Press, vol. 4(1), pages 1-25, April.
    23. Li, Bozhong & van Zanden, Jan Luiten, 2012. "Before the Great Divergence? Comparing the Yangzi Delta and the Netherlands at the Beginning of the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 72(4), pages 956-989, December.
    24. Voth, Hans-Joachim, 1998. "Time and Work in Eighteenth-Century London," The Journal of Economic History, Cambridge University Press, vol. 58(1), pages 29-58, March.
    25. Karaman, K. Kivanç & Pamuk, Şevket, 2010. "Ottoman State Finances in European Perspective, 1500–1914," The Journal of Economic History, Cambridge University Press, vol. 70(3), pages 593-629, September.
    26. Wrigley,E. A., 2010. "Energy and the English Industrial Revolution," Cambridge Books, Cambridge University Press, number 9780521766937.
    27. Lennart Schon & Olle Krantz, 2012. "The Swedish economy in the early modern period: constructing historical national accounts," European Review of Economic History, Oxford University Press, vol. 16(4), pages 529-549, November.
    28. repec:hhs:iuiwop:430 is not listed on IDEAS
    29. repec:oup:econjl:v:129:y:2019:i:10:p:2867-2887. is not listed on IDEAS
    30. Malanima, Paolo, 2011. "The long decline of a leading economy: GDP in central and northern Italy, 1300–1913," European Review of Economic History, Cambridge University Press, vol. 15(2), pages 169-219, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Broadberry, Stephen & Gardner, Leigh, 2022. "Economic growth in Sub-Saharan Africa, 1885–2008: Evidence from eight countries," Explorations in Economic History, Elsevier, vol. 83(C).
    2. Charotti, Carlos & Palma, Nuno Pedro G. & Pereira dos Santos, João, 2022. "American treasure and the decline of Spain," CEPR Discussion Papers 17020, C.E.P.R. Discussion Papers.
    3. Yao Chen & Nuno Palma & Felix Ward, 2022. "Goldilocks: American precious metals and the Rise of the West," Tinbergen Institute Discussion Papers 22-063/VI, Tinbergen Institute.
    4. Elisa Borghi & Fabio Gatti & Donato Masciandaro, 2022. "Neither Communes nor Fiefs: King Owned Towns, Right Negotiations and Long Run Persistence. The Case of South Italy," BAFFI CAREFIN Working Papers 22182, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.

    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. Stephen Broadberry, 2021. "Accounting for the Great Divergence: Recent findings from historical national accounting," CAGE Online Working Paper Series 549, Competitive Advantage in the Global Economy (CAGE).
    2. Broadberry, Stephen, 2013. "Accounting for the great divergence," Economic History Working Papers 54573, London School of Economics and Political Science, Department of Economic History.
    3. Broadberry, Stephen N, 2020. "The Industrial Revolution and the Great Divergence: Recent Findings from Historical National Accounting," CEPR Discussion Papers 15207, C.E.P.R. Discussion Papers.
    4. Broadberry, Stephen & Ghosal, Sayantan & Proto, Eugenio, 2017. "Anonymity, efficiency wages and technological progress," Journal of Development Economics, Elsevier, vol. 127(C), pages 379-394.
    5. Broadberry, Stephen, 2013. "Accounting For The Great Divergence," CAGE Online Working Paper Series 160, Competitive Advantage in the Global Economy (CAGE).
    6. Bassino, Jean-Pascal & Broadberry, Stephen & Fukao, Kyoji & Gupta, Bishnupriya & Takashima, Masanori, 2019. "Japan and the great divergence, 730–1874," Explorations in Economic History, Elsevier, vol. 72(C), pages 1-22.
    7. Yao Chen & Nuno Palma & Felix Ward, 2022. "Goldilocks: American precious metals and the Rise of the West," Tinbergen Institute Discussion Papers 22-063/VI, Tinbergen Institute.
    8. Palma, Nuno & Reis, Jaime, 2019. "From Convergence to Divergence: Portuguese Economic Growth, 1527–1850," The Journal of Economic History, Cambridge University Press, vol. 79(2), pages 477-506, June.
    9. Broadberry,Stephen; Ghosal, Sayantan; Proto, Eugenio, 2011. "Is Anonymity the Missing Link Between Commercial and Industrial Revolution?," CAGE Online Working Paper Series 54, Competitive Advantage in the Global Economy (CAGE).
    10. Ken Tabata, 2013. "The Expansion of the Commercial Sector and the Child Quantity-Quality Transition in a Malthusian World," Discussion Paper Series 105, School of Economics, Kwansei Gakuin University, revised May 2013.
    11. Alexandra M. de Pleijt & Jan Luiten van Zanden, 2016. "Accounting for the “Little Divergence”: What drove economic growth in pre-industrial Europe, 1300–1800?," European Review of Economic History, Oxford University Press, vol. 20(4), pages 387-409.
    12. Yi Xu & Zhihong Shi & Bas Leeuwen & Yuping Ni & Zipeng Zhang & Ye Ma, 2017. "Chinese National Income, ca. 1661–1933," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 57(3), pages 368-393, November.
    13. Ho, Chi Pui, 2016. "Industrious Selection: Explaining Five Revolutions and Two Divergences in Eurasian Economic History within a Unified Growth Framework," MPRA Paper 73862, University Library of Munich, Germany.
    14. Stephen Broadberry & Bruce Campbell & Alexander Klein & Mark Overton & Bas van Leeuwen, 2012. "British Economic Growth, 1270-1870: an output-based approach," Studies in Economics 1203, School of Economics, University of Kent.
    15. Stephen Broadberry & Leigh Gardner, 2019. "Economic Growth In Sub-Saharan Africa, 1885-2008," Oxford Economic and Social History Working Papers _169, University of Oxford, Department of Economics.
    16. Crafts, Nicholas & O’Rourke, Kevin Hjortshøj, 2014. "Twentieth Century Growth*This research has received funding from the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013) / ERC grant agreement no. 249546.," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 263-346, Elsevier.
    17. Philip T. Hoffman, 2020. "The Great Divergence: Why Britain Industrialised First," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 60(2), pages 126-147, July.
    18. Broadberry, Stephen N & Guan, Hanhui & Li, David Daokui, 2017. "China, Europe and the great Divergence: A Study in Historical National Accounting, 980-1850," CEPR Discussion Papers 11972, C.E.P.R. Discussion Papers.
    19. Roger Fouquet & Stephen Broadberry, 2015. "Seven Centuries of European Economic Growth and Decline," Journal of Economic Perspectives, American Economic Association, vol. 29(4), pages 227-244, Fall.
    20. Mario García-Zúñiga & Ernesto López-Losa, 2019. "Building Workers in Madrid (1737-1805). New Wage Series and Working Lives," Working Papers 0152, European Historical Economics Society (EHES).

    More about this item

    Keywords

    explanation; Great Divergence; living standards; Measurement;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cpr:ceprdp:15936. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.cepr.org .

    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: (email available below). General contact details of provider: https://www.cepr.org .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.