IDEAS home Printed from https://ideas.repec.org/p/hes/wpaper/0179.html
   My bibliography  Save this paper

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

Author

Listed:
  • Leticia Arroyo Abad

    (City University if New York - Queens College)

  • Nuno Palma

    (University of Manchester; Instituto de Ciências Sociais, Universidade de Lisboa; CEPR)

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. 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

  • Leticia Arroyo Abad & Nuno Palma, 2020. "The Fruits of El Dorado: The Global Impact of American Precious Metals," Working Papers 0179, European Historical Economics Society (EHES).
  • Handle: RePEc:hes:wpaper:0179
    as

    Download full text from publisher

    File URL: https://www.ehes.org/wp/EHES_179.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daron Acemoglu & Simon Johnson & James Robinson, 2005. "The Rise of Europe: Atlantic Trade, Institutional Change, and Economic Growth," American Economic Review, American Economic Association, vol. 95(3), pages 546-579, June.
    2. Leandro Prados de la Escosura, 2022. "Capital in Spain, 1850–2019," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 16(1), pages 1-28, January.
    3. Patrick K. O'Brien & Nuno Palma, 2023. "Not an ordinary bank but a great engine of state: The Bank of England and the British economy, 1694–1844," Economic History Review, Economic History Society, vol. 76(1), pages 305-329, February.
    4. Abad, Leticia Arroyo & van Zanden, Jan Luiten, 2016. "Growth under Extractive Institutions? Latin American Per Capita GDP in Colonial Times," The Journal of Economic History, Cambridge University Press, vol. 76(4), pages 1182-1215, December.
    5. Thomas J. Sargent, 2012. "Nobel Lecture: United States Then, Europe Now," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 1-40.
    6. Prados de la Escosura, Leandro & Ã lvarez-Nogal, Carlos & Santiago-Caballero, Carlos, 2020. "Growth Recurring in Preindustrial Spain: Half A Millennium Perspective," CEPR Discussion Papers 14479, C.E.P.R. Discussion Papers.
    7. Adam Brzezinski & Yao Chen & Nuno Palma & Felix Ward, 2019. "The vagaries of the sea: evidence on the real effects of money from maritime disasters in the Spanish Empire," Working Papers 0170, European Historical Economics Society (EHES).
    8. Rafael Dobado & Gustavo A. Marrero, 2011. "The role of the Spanish imperial state in the mining‐led growth of Bourbon Mexico's economy," Economic History Review, Economic History Society, vol. 64(3), pages 855-884, August.
    9. Ronald Findlay & Kevin H. O'Rourke, 2007. "Power and Plenty: Trade, War and the World Economy in the Second Millennium (Preface)," Trinity Economics Papers tep0107, Trinity College Dublin, Department of Economics.
    10. Palma, Nuno, 2018. "Money and modernization in early modern England," Financial History Review, Cambridge University Press, vol. 25(3), pages 231-261, December.
    11. António Henriques & Nuno Palma, 2023. "Comparative European Institutions and the Little Divergence, 1385–1800," Journal of Economic Growth, Springer, vol. 28(2), pages 259-294, June.
    12. Nuno Palma, 2018. "Reconstruction of money supply over the long run: the case of England, 1270–1870," Economic History Review, Economic History Society, vol. 71(2), pages 373-392, May.
    13. Irigoin, Alejandra, 2013. "A trojan horse in Daoguang China? Explaining the flows of silver in and out of China," Economic History Working Papers 49082, London School of Economics and Political Science, Department of Economic History.
    14. Hough,Jerry F. & Grier,Robin, 2015. "The Long Process of Development," Cambridge Books, Cambridge University Press, number 9781107670419.
    15. Wallis, Patrick & Colson, Justin & Chilosi, David, 2018. "Structural Change and Economic Growth in the British Economy before the Industrial Revolution, 1500–1800," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 862-903, September.
    16. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    17. Grafe, Regina & Irigoin, Maria Alejandra, 2006. "The Spanish Empire and its legacy: fiscal redistribution and political conflict in colonial and post-colonial Spanish America," Journal of Global History, Cambridge University Press, vol. 1(2), pages 241-267, July.
    18. 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.
    19. Carlos Álvarez Nogal, 1997. "Los banqueros de Felipe IV y los metales preciosos americanos (1621-1665)," Estudios de Historia Económica, Banco de España, number 36, November.
    20. Patrick K O'Brien & Nuno Palma, 2020. "Danger to the Old Lady of Threadneedle Street? The Bank Restriction Act and the regime shift to paper money, 1797–1821," European Review of Economic History, European Historical Economics Society, vol. 24(2), pages 390-426.
    21. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    22. Drelichman, Mauricio, 2005. "All that glitters: Precious metals, rent seeking and the decline of Spain," European Review of Economic History, Cambridge University Press, vol. 9(3), pages 313-336, December.
    23. Leonor Freire Costa & Nuno Palma & Jaime Reis, 2015. "Editor's choice The great escape? The contribution of the empire to Portugal's economic growth, 1500–1800," European Review of Economic History, European Historical Economics Society, vol. 19(1), pages 1-22.
    24. Arroyo Abad, Leticia & Davies, Elwyn & van Zanden, Jan Luiten, 2012. "Between conquest and independence: Real wages and demographic change in Spanish America, 1530–1820," Explorations in Economic History, Elsevier, vol. 49(2), pages 149-166.
    25. Gallo, Andrés & Newland, Carlos, 2004. "Globalización y convergencia de precios en el Imperio Español 1660–1810," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 22(3), pages 573-596, December.
    26. Allen, Robert C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War," Explorations in Economic History, Elsevier, vol. 38(4), pages 411-447, October.
    27. Prados de la Escosura, Leandro & Ã lvarez-Nogal, Carlos & Santiago-Caballero, Carlos, 2020. "Growth Recurring in Preindustrial Spain: Half A Millennium Perspective," CEPR Discussion Papers 14479, C.E.P.R. Discussion Papers.
    28. 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.
    29. Karaman, K. Kıvanç & Pamuk, Şevket & Yıldırım-Karaman, Seçil, 2020. "Money and monetary stability in Europe, 1300–1914," Journal of Monetary Economics, Elsevier, vol. 115(C), pages 279-300.
    30. Drelichman, Mauricio & Voth, Hans-Joachim, 2010. "The Sustainable Debts of Philip II: A Reconstruction of Castile's Fiscal Position, 1566–1596," The Journal of Economic History, Cambridge University Press, vol. 70(4), pages 813-842, December.
    31. Vries,Jan de, 2008. "The Industrious Revolution," Cambridge Books, Cambridge University Press, number 9780521895026.
    32. Nuno Palma, 2016. "Sailing away from Malthus: intercontinental trade and European economic growth, 1500–1800," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 10(2), pages 129-149, may.
    33. Hough,Jerry F. & Grier,Robin, 2014. "The Long Process of Development," Cambridge Books, Cambridge University Press, number 9781107063693.
    34. Irigoin, Alejandra, 2013. "A 'Trojan Horse' in Daoguang China?: Explaining the flows of silver (and opium) in and out of China," MPRA Paper 43987, University Library of Munich, Germany.
    35. Drelichman, Mauricio, 2005. "The curse of Moctezuma: American silver and the Dutch disease," Explorations in Economic History, Elsevier, vol. 42(3), pages 349-380, July.
    36. Vicente, Pedro C., 2010. "Does oil corrupt? Evidence from a natural experiment in West Africa," Journal of Development Economics, Elsevier, vol. 92(1), pages 28-38, May.
    37. repec:oup:econjl:v:129:y:2019:i:10:p:2867-2887. is not listed on IDEAS
    38. Ronald Findlay & Kevin H. O'Rourke, 2007. "Preface to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    39. Regina Grafe, 2012. "Distant Tyranny: Markets, Power, and Backwardness in Spain, 1650-1800," Economics Books, Princeton University Press, edition 1, number 9625.
    40. Vries,Jan de, 2008. "The Industrious Revolution," Cambridge Books, Cambridge University Press, number 9780521719254.
    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. 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).
    2. Arteaga, Fernando & Desierto, Desiree & Koyama, Mark, 2024. "Shipwrecked by rents," Journal of Development Economics, Elsevier, vol. 168(C).
    3. repec:tin:wpaper:220063 is not listed on IDEAS
    4. 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.
    5. Palma, Nuno & Bonfatti, Roberto & Brzezinski, Adam & Karaman, Kivanc, 2020. "Monetary Capacity," CEPR Discussion Papers 15299, C.E.P.R. Discussion Papers.
    6. Charotti, Carlos Javier & Palma, Nuno & dos Santos, Joao Pereira, 2022. "American treasure and the decline of Spain," CEPR Discussion Papers 17020, C.E.P.R. Discussion Papers.
    7. Kedrosky, Davis & Palma, Nuno, 2021. "The Cross of Gold: Brazilian Treasure and the Decline of Portugal," CAGE Online Working Paper Series 574, Competitive Advantage in the Global Economy (CAGE).

    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. Nuno Palma, 2019. "American Precious Metals and their Consequences for Early Modern Europe," Working Papers 0174, European Historical Economics Society (EHES).
    2. António Henriques & Nuno Palma, 2023. "Comparative European Institutions and the Little Divergence, 1385–1800," Journal of Economic Growth, Springer, vol. 28(2), pages 259-294, June.
    3. Nuno Palma & André C. Silva, 2024. "Spending A Windfall," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(1), pages 283-313, February.
    4. Adam Brzezinski & Roberto Bonfatti & K. KıvançKaraman & Nuno Palma, 2020. "Monetary Capacity," Economics Series Working Papers 926, University of Oxford, Department of Economics.
    5. Carlos J. Charotti & Nuno Palma & João Pereira dos Santos, 2022. "American Treasure and the Decline of Spain," Economics Discussion Paper Series 2201, Economics, The University of Manchester.
    6. 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).
    7. Arteaga, Fernando & Desierto, Desiree & Koyama, Mark, 2024. "Shipwrecked by rents," Journal of Development Economics, Elsevier, vol. 168(C).
    8. Patrick K. O'Brien & Nuno Palma, 2023. "Not an ordinary bank but a great engine of state: The Bank of England and the British economy, 1694–1844," Economic History Review, Economic History Society, vol. 76(1), pages 305-329, February.
    9. repec:tin:wpaper:220063 is not listed on IDEAS
    10. Daniel Barbezat, 2011. "The Economic History of European Growth," Chapters, in: Gail M. Hoyt & KimMarie McGoldrick (ed.), International Handbook on Teaching and Learning Economics, chapter 51, Edward Elgar Publishing.
    11. Meissner, Christopher M., 2014. "Growth from Globalization? A View from the Very Long Run," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 8, pages 1033-1069, Elsevier.
    12. 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.
    13. Kedrosky, Davis & Palma, Nuno, 2021. "The Cross of Gold: Brazilian Treasure and the Decline of Portugal," CAGE Online Working Paper Series 574, Competitive Advantage in the Global Economy (CAGE).
    14. J. I. Andrés Ucendo & R. Lanza García, 2014. "Prices and real wages in seventeenth-century Madrid," Economic History Review, Economic History Society, vol. 67(3), pages 607-626, August.
    15. Leonor Freire Costa & António Henriques & Nuno Palma, 2022. "Anatomy of a Premodern State," Economics Discussion Paper Series 2208, Economics, The University of Manchester.
    16. 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.
    17. 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.
    18. Prados de la Escosura, Leandro & Rodríguez-Caballero, C. Vladimir, 2022. "War, pandemics, and modern economic growth in Europe," Explorations in Economic History, Elsevier, vol. 86(C).
    19. Prados de la Escosura, Leandro & Rodriguez-Caballero, Carlos Vladimir, 2020. "Growth, War, and Pandemics: Europe in the Very Long-run," CEPR Discussion Papers 14816, C.E.P.R. Discussion Papers.
    20. Leonor Freire Costa & Maria Manuela Rocha & Paulo B. Brito, 2018. "The alchemy of gold: interest rates, money stock, and credit in eighteenth‐century Lisbon," Economic History Review, Economic History Society, vol. 71(4), pages 1147-1172, November.
    21. Kevin H. O'Rourke, Leandro Prados de la Escosura and Guilllaume Daudin, 2008. "Trade and Empire, 1700-1870," The Institute for International Integration Studies Discussion Paper Series iiisdp249, IIIS.

    More about this item

    Keywords

    Denmark; enclosures; land inequality;
    All these keywords.

    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

    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:hes:wpaper:0179. 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: Paul Sharp (email available below). General contact details of provider: https://edirc.repec.org/data/ehessea.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.