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The Fruits of El Dorado: The Global Impact of American Precious Metals

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  • Palma, Nuno
  • Arroyo Abad, Leticia

Abstract

The quest for precious metals and trade routes during the early modern period fundamentally changed the world. What was the global impact of the large deposits of silver and gold which existed in the Americas? In this chapter, we take a global view. We find that in Europe, England and the Netherlands benefited the most. By contrast, the colonizers par excellence, Spain and Portugal, were unable to profit from their colonial expansion. In Latin America, the exploitation of precious mineral resources enabled the geographic expansion of the empire and shaped labor institutions, the fiscal apparatus, and economic activity. The direct impact on other parts of the world was negligible; but the long-term political consequences of European presence shaped the world as we know it today.

Suggested Citation

  • Palma, Nuno & Arroyo Abad, Leticia, 2021. "The Fruits of El Dorado: The Global Impact of American Precious Metals," CEPR Discussion Papers 16067, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16067
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    Cited by:

    1. Arteaga, Fernando & Desierto, Desiree & Koyama, Mark, 2024. "Shipwrecked by rents," Journal of Development Economics, Elsevier, vol. 168(C).
    2. Palma, Nuno & Reis, Jaime & Rodrigues, Lisbeth, 2023. "Historical gender discrimination does not explain comparative Western European development: evidence from Portugal, 1300-1900," Explorations in Economic History, Elsevier, vol. 88(C).
    3. Charotti, Carlos J. & Palma, Nuno & Pereira dos Santos, João, 2025. "American treasure and the decline of Spain," European Economic Review, Elsevier, vol. 180(C).
    4. Kedrosky, Davis & Palma, Nuno, 2025. "The Cross of Gold: Brazilian Treasure and the Decline of Portugal," The Journal of Economic History, Cambridge University Press, vol. 85(3), pages 730-766, September.
    5. Yao Chen & Nuno Palma & Felix Ward, 2026. "Goldilocks: American Precious Metals and the Rise of the West," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 72(1), February.
    6. repec:tin:wpaper:220063 is not listed on IDEAS
    7. Palma, Nuno & Papadia, Andrea & Pereira, Thales & Weller, Leonardo, 2020. "Slavery and development in nineteenth century Brazil," CEPR Discussion Papers 15495, C.E.P.R. Discussion Papers.
    8. Abad, Leticia Arroyo & Maurer, Noel, 2024. "Does time heal all wounds? The rise, decline, and long-term impact of forced labor in Spanish America," Explorations in Economic History, Elsevier, vol. 93(C).
    9. Palma, Nuno & Bonfatti, Roberto & Brzezinski, Adam & Karaman, Kivanc, 2020. "Monetary Capacity," CEPR Discussion Papers 15299, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

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    JEL classification:

    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism

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