On Custom in Economics: The Case of Humanism and Trade Regimes

Barbara Krug

Journal of Institutional and Theoretical Economics (JITE), 1999, vol. 155, issue 3, 405-

Abstract: Ideas and beliefs can make a contribution to economic development. The case of Humanism and the Low Countries' sudden rise to prosperity prove the point. Humanism became of substantial economic value when it turned out that its norms and customs allowed the Dutch long-distance trader to find more, and more willing, trade partners in the East Indies. Both individual behaviour and the overall set of customs fitted better the existing trade regimes between the African East Coast and Japan. Non-discrimination on religious or racial grounds, voluntary excange, norms of hospitality and reciprocity sustained low transaction costs in long distance trade in and between the trade regimes. Yet, Humanism serves also as an example for showing that even after a specific set of norms has proved its usefulness, and even if scale economics can be expected, it can still collapse depending on sanctioning funds that are either missing or too weak.

JEL-codes: A13 D71 N43 Z10 (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mhr:jinste:urn:sici:0932-4569(199909)155:3_405:ocietc_2.0.tx_2-v

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

Access Statistics for this article

Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C

More articles in Journal of Institutional and Theoretical Economics (JITE) from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().