UNIFIED CHINA AND DIVIDED EUROPE

Chiu Yu Ko, Mark Koyama and Tuan†Hwee Sng

International Economic Review, 2018, vol. 59, issue 1, 285-327

Abstract: This article studies the causes and consequences of political centralization and fragmentation in China and Europe. We argue that a severe and unidirectional threat of external invasion fostered centralization in China, whereas Europe faced a wider variety of smaller external threats and remained fragmented. Political centralization in China led to lower taxation and hence faster population growth during peacetime compared to Europe. But it also meant that China was more vulnerable to occasional negative population shocks. Our results are consistent with historical evidence of warfare, capital city location, tax levels, and population growth in both China and Europe.

Date: 2018
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https://doi.org/10.1111/iere.12270

Related works:
Working Paper: Unified China and divided Europe (2014)
Working Paper: Unified China and Divided Europe (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:iecrev:v:59:y:2018:i:1:p:285-327

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