Mercantilism, world-system hegemony and protoanalysis of national competitiveness

G. Gloveli
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G. Gloveli: National Research University "Higher School of Economics", Moscow, Russia

Journal of the New Economic Association, 2021, vol. 51, issue 3, 163-194

Abstract: The article represents in a world-system retrospect the European mercantilist discourse versus William Petty's "Political Arithmetic". It is revealed that the elevation of the Dutch Republic (the United Provinces of the Northern Netherlands) as the first hegemonic power of the emerging capitalist world-system during 17th century, made this land the "reference area" of the balance-of-trade doctrine. It is demonstrated that W. Petty gave the most insightful and profound explanations of the commercial success and industrial competitiveness of Holland, including various structural and institutional aspects. It is exposed that, unlike other proponents of the doctrine of an active trade balance, Petty did not limit himself to characterizing the Dutch leadership in shipbuilding and navigation and transit trade. He recorded the advanced development in Holland of diversified agriculture (rotation of crops, dairy farming and industrial crops), energy (wind mechanization) and the manufacturing industry (especially on far-delivered raw materials). It is explained in the context of world-systems approach that Petty reflected the core-peripheral structure of the emerging system of the international division of labor and noted that the fastening of the specialization of European countries East of the Elbe in laborious agriculture was the seamy side of the Dutch domination in oversea trade and their specialization in highly profitable industries. In comparison with M. Porter's "diamond of national competitive advantages", it was explicated that W. Petty in "Political Arithmetic", using the example of Holland, actually analyzed three of the four main elements of national competitiveness: 1) parameters of production factors; 2) segment structure and other demand conditions; 3) the presence in the country of related or supporting industries that are competitive in the international market. The foresight of Petty as a forecaster is noted, which allowed him to discern the essential signs of the rise of England as a new hegemonic power in the next systemic cycle of capitalist accumulation. The distinctive features of England as the reference area of Physiocracy and classical political economy are briefly characterized, in contrast to the Dutch reference area of the trade balance doctrine.

Keywords: balance-of-trade doctrine; Dutch "reference area"; world-system hegemony; diamond of national competitiveness; core-peripheral structure; axial division of labor; Industrial revolution (search for similar items in EconPapers)
JEL-codes: B11 B31 L60 N93 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2021:i:51:p:163-194

DOI: 10.31737/2221-2264-2021-51-3-8

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