Unified China and Divided Europe

Chiu Yu Ko, Mark Koyama and Tuan-Hwee Sng

No 2014-7, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This paper studies the causes and consequences of political centralization and fragmentation in China and Europe. We argue that the severe and unidirectional threat of external invasion fostered political centralization in China while Europe faced a wider variety of moderate external threats and remained politically fragmented. Our model allows us to explore the economic consequences of political centralization and fragmentation. Political centralization in China led to lower taxation and hence faster population growth during peacetime than in Europe. But it also meant that China was relatively fragile in the event of an external invasion. Our results are consistent with historical evidence of violent conflicts, tax levels, and population growth in both China and Europe.

Keywords: China; Europe; Great Divergence; Political Fragmentation; Political Centralization (search for similar items in EconPapers)
JEL-codes: H2 H4 H56 N30 N33 N35 N40 N43 N45 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2014-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/28270/wp2014-7.pdf

Related works:
Journal Article: UNIFIED CHINA AND DIVIDED EUROPE (2018)
Working Paper: Unified China and divided Europe (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitcei:2014-7

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