 IntroductionJuan José Rivas Moreno ()
Chapter Chapter 1 in The Capital Market of Manila and the Pacific Trade, 1668-1838, 2024, pp 1-31 from Palgrave Macmillan Abstract: Abstract The literature has analysed the importance of institutions in solving liquidity constraints and mitigating information asymmetries and the principal-agent problem, enabling the emergence of impersonal financial markets capable of financing long-distance trade across continents. The literature has focused on the role of institutions in mitigating transaction costs, signalling the joint-stock corporation as the necessary organisational innovation that made possible the development of sustained long-distance trade. The case of Manila and its financing of the Pacific exchange represents a different instance in which a capital market emerged from different building blocks. The capital market of Manila financed long-distance trade across the Pacific through sea loans, legacy funds, and lay confraternities, mitigating risk and enabling the origination of large volumes of working capital for commerce. Keywords: Institutions; Long-distance trade; Reciprocal comparisons; Institutional formation (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palscp:978-3-031-71810-6_1 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-71810-6_1 Access Statistics for this chapter More chapters in Palgrave Studies in Economic History from Palgrave Macmillan |
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