States and Development: Early Modern India, China, and the Great Divergence

Bishnupriya Gupta (), Debin Ma and Tirthankar Roy
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Bishnupriya Gupta: University of Warwick
Debin Ma: London School of Economics
Tirthankar Roy: London School of Economics

A chapter in Economic History of Warfare and State Formation, 2016, pp 51-69 from Springer

Abstract: Abstract Can differences in state capacity explain the Great Divergence between Asia and Europe? Evidence from India and China suggests that customary property rights provided de facto rights to land and community ties substituted for de jure property rights in mercantile activities. Economic activity did not face an undue risk of expropriation. China and India generated lower fiscal revenue per capita compared to Europe. We explain the big difference in revenue per capita between the two Asian countries and England in the early modern period. In terms of the differences in the threat of internal and external conflicts. The large empires in Asia faced a disproportionate threat of internal rebellions and traded off fiscal capacity for appeasement of local ruling groups and their military support in external conflicts.

Keywords: Property rights; Fiscal capacity; Warfare; Great divergence; Mughal India; Qing China; East India Company (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-981-10-1605-9_2

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