At the Onset of the original capital accumulation
The historical data show that the early modern period in Great Britain paved the way to the classical industrial revolution presenting the rst phase of capital accumulation and rise in per capita income. This paper captures the relevant evidence by means of a stylized model describing two engines determining this economic process: the role of the guilds in the manufacturing industry and proto-industrialization. On the evidence of the historical facts, we show that the process of capital accumulation was driven by a class of capitalists, the entrepreneurs-merchants, who shifted manufacturing production to the countryside in order to escape from the guilds' market power in urban environments. In the countryside entrepreneurs-merchants increased their rate of pro t, triggering capital accumulation by exploiting cheaper labour costs and the re-allocation of working time from agricultural to manufacturing activity. Finally, we show that the model corresponds to the pattern of historical data on manufacturing production and capital accumulation from the 14th century to the rise of the classical industrial revolution.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Via Silvio d'Amico 77, - 00145 Rome Italy|
Phone: +39 06 57114612
Fax: +39 06 57114771
Web page: http://host.uniroma3.it/dipartimenti/economia/it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mendels, Franklin F., 1972. "Proto-industrialization: The First Phase of the Industrialization Process," The Journal of Economic History, Cambridge University Press, vol. 32(01), pages 241-261, March.
- Gary D. Hansen & Edward C. Prescott, 1999.
"Malthus to Solow,"
257, Federal Reserve Bank of Minneapolis.
- Ogilvie,Sheilagh, 2011.
"Institutions and European Trade,"
Cambridge University Press, number 9780521747929, Junio.
- 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.
- Dilip Mookherjee & Debraj Ray, 2000.
"Contractual Structure and Wealth Accumulation,"
Boston University - Institute for Economic Development
107, Boston University, Institute for Economic Development.
- Dilip Mookherjee & Debraj Ray, 2000. "Contractual Structure and Wealth Accumulation," Econometric Society World Congress 2000 Contributed Papers 1538, Econometric Society.
- Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633, December.
- Bertocchi, Graziella, 2003.
"The Law of Primogeniture and the Transition from Landed Aristocracy to Industrial Democracy,"
CEPR Discussion Papers
3723, C.E.P.R. Discussion Papers.
- Graziella Bertocchi, 2006. "The Law of Primogeniture and the Transition from Landed Aristocracy to Industrial Democracy," Journal of Economic Growth, Springer, vol. 11(1), pages 43-70, 03.
- Clark, Gregory & Clark, Anthony, 2001. "Common Rights To Land In England, 1475 1839," The Journal of Economic History, Cambridge University Press, vol. 61(04), pages 1009-1036, December.
- Robert C. Allen & Jacob Louis Weisdorf, 2010.
"Was there an ‘Industrious Revolution’ before the Industrial Revolution? An Empirical Exercise for England, c. 1300-1830,"
10-14, University of Copenhagen. Department of Economics.
- R. C. Allen & J. L. Weisdorf, 2011. "Was there an ‘industrious revolution’ before the industrial revolution? An empirical exercise for England, c. 1300–1830," Economic History Review, Economic History Society, vol. 64(3), pages 715-729, 08.
- Peretto, Pietro F., 2015.
"From Smith to Schumpeter: A theory of take-off and convergence to sustained growth,"
European Economic Review,
Elsevier, vol. 78(C), pages 1-26.
- Pietro F. Peretto, 2013. "From Smith to Schumpeter: A Theory of Take-Off and Convergence to Sustained Growth," Working Papers 13-10, Duke University, Department of Economics.
- Pietro Peretto, 2012. "From Smith to Schumpeter: A Theory of Take-off and Convergence to Sustained Growth," DEGIT Conference Papers c017_009, DEGIT, Dynamics, Economic Growth, and International Trade.
- repec:afc:cliome:v:5:y:2011:i:3:p:291-321 is not listed on IDEAS
- W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, 08.
- Shekhar Aiyar & Carl-Johan Dalgaard & Omer Moav, 2008.
"Technological progress and regress in pre-industrial times,"
Journal of Economic Growth,
Springer, vol. 13(2), pages 125-144, June.
- Aiyar, Shekhar & Dalgaard, Carl-Johan & Moav, Omer, 2006. "Technological Progress and Regress in Pre-Industrial Times," CEPR Discussion Papers 5454, C.E.P.R. Discussion Papers.
- Clark, Gregory, 1988. "The cost of capital and medieval agricultural technique," Explorations in Economic History, Elsevier, vol. 25(3), pages 265-294, July.
- Oded Galor & Omer Moav, 1999.
"From Physical to Human Capital Accumulation: Inequality in the Process of Development,"
99-27, Brown University, Department of Economics.
- Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," Review of Economic Studies, Oxford University Press, vol. 71(4), pages 1001-1026.
- Galor, Oded & Moav, Omer, 1999. "From Physical to Human Capital Accumulation: Inequality in the Process of Development," CEPR Discussion Papers 2307, C.E.P.R. Discussion Papers.
- Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," GE, Growth, Math methods 0410005, EconWPA.
- Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:rtr:wpaper:0179. 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: (Telephone for information)
If references are entirely missing, you can add them using this form.