Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-24T23:49:01.840Z Has data issue: false hasContentIssue false

Dating the Great Divergence

Published online by Cambridge University Press:  23 June 2021

Jack A. Goldstone*
Affiliation:
George Mason University, Fairfax, 22030-4444VA, USA
*
Corresponding author. E-mail: [email protected]

Abstract

New data on Dutch and British GDP/capita show that at no time prior to 1750, perhaps not before 1800, did the leading countries of northwestern Europe enjoy sustained strong growth in GDP/capita. Such growth in income per head as did occur was highly episodic, concentrated in a few decades and then followed by long periods of stagnation of income per head. Moreover, at no time before 1800 did the leading economies of northwestern Europe reach levels of income per capita much different from peak levels achieved hundreds of years earlier in the most developed regions of Italy and China. When the Industrial Revolution began in Britain, it was not preceded by patterns of pre-modern income growth that were in any way remarkable, neither by sustained prior growth in real incomes nor exceptional levels of income per head. The Great Divergence, seen as the onset of sustained increases in income per head despite strong population growth, and achievement of incomes beyond pre-modern peaks, was a late occurrence, arising only from 1800.

Type
Position Paper
Copyright
© The Author(s), 2021. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 H.-F. Hung, “Orientalist Knowledge and Social Theories: China and the European Conceptions of East-West Differences from 1600 to 1900,” Sociological Theory 21 (2003): 254–79.

2 P. Hoffman, Why did Europe Conquer the World? (Princeton, NJ, 2015); G. Clark, A Farewell to Alms: A Brief Economic History of the World (Princeton, NJ, 2007); T. Huff, The Rise of Early Modern Science: Islam, China and the West (Cambridge, 2003); D. N. McCloskey, Bourgeois Equality: How Ideas, Not Capital or Institutions, Enriched the World (Chicago, 2016); J. Mokyr, The Culture of Growth (Princeton, NJ, 2016); S. R. Epstein, Freedom and Growth: The Rise of States and Markets in Europe, 1300–1750 (London, 2000); Angus Maddison, Contours of the World Economy 1-2030 A.D.: Essays in Macro-Economic History (Oxford, 2007); J. L. van Zanden, The Long Road to the Industrial Revolution: The European Economy in Global Perspective 1000–1800 (Boston, 2009); J. de Vries, The Industrious Revolution: Consumer Behavior and the Household Economy, 1650 to the Present (New York, 2008); R. C. Allen, The British Industrial Revolution in Global Perspective (Cambridge, 2009); J.-L. Rosenthal and R. B. Wong, Before and Beyond Divergence: The Politics of Economic Change in China and Europe (Cambridge, MA, 2011); P. Vries, Escaping Poverty: The Origins of Modern Economic Growth (Goettingen, 2013).

3 R. Fouquet and S. Broadberry, “Seven Centuries of European Economic Growth and Decline,” Journal of Economic Perspectives 29 (2015): 227–244.; S. Broadberry and B. Gupta, “The Early Modern Great Divergence: Wages, Prices and Economic Development in Europe and Asia, 1500–1800,” Economic History Review LIX (2006): 2–31.

4 K. Pomeranz, The Great Divergence: China, Europe, and the Making of the Modern World Economy (Princeton, NJ, 2000); R. B. Wong, China Transformed: Historical Change and the Limits of European Experience (Ithaca, NY); A. G. Frank, Re-Orient: Global Economy in the Asian Age (Berkeley, CA, 1998); B. Li, Agricultural Development in Jiangnan, 1620–1850 (New York, 1998); R. Marks, Tigers, Rice, Silk and Silt (New York, 2006); J. A. Goldstone, “The Problem of the ‘Early Modern’ World,” Journal of the Economic and Social History of the Orient 41 (1998): 249–84; J. A. Goldstone, Revolution and Rebellion in the Early Modern World: Population Change and State Breakdown in England, France, Turkey and China 1600–1850. 25th Anniversary Edition (New York, 2016); J. A. Goldstone, “The Rise of the West—or not? A Revision to Socio-Economic History,” Sociological Theory 18 (2000): 157–94; D. O. Flynn and A. Giráldez, China and the Birth of Globalization in the 16 th Century (Farnham, 2010); P. Parthasarathi, Why Europe Grew Rich and Asia Did Not: Global Economic Divergence, 1600–1850 (Cambridge, 2011); P. Vries, Via Peking Back to Manchester: Britain, the Industrial Revolution and China (Leiden, 2003).

5 Especially G. W. Skinner, The City in Late Imperial China (Stanford, CA, 1977); W. Rowe, Hankow: Commerce and Society in a Chinese City, 1796–1889 (Stanford, CA, 1992); J. Z. Lee and W. Feng, One Quarter of Humanity: Malthusian Mythology and Chinese Realities (Cambridge, MA, 2001); P. Perdue, China Marches West: The Qing Conquest of Central Eurasia (Cambridge, MA, 2005); T. Brook, The Confusions of Pleasure: Commerce and Culture in Ming China (Berkeley, CA, 1998); S. Naquin and E. S. Rawski, Chinese Society in the Eighteenth Century (New Haven, CT, 1987).

6 D. Zhao, The Confucian-Legalist State (Oxford, 2015).

7 Population of Holland from text below; England and France from M. Livi Bacci, A Concise History of World Population, 6th ed. (Hoboken, NJ, 2017), 69; China from von Glahn, China, 330.

8 S. Broadberry, B. M. S. Campbell, A. Klein, M. Overton and B. van Leeuwen, British Economic Growth, 1270–1870 (Cambridge, 2015); J. L. van Zanden and B. van Leeuwen, “Reconstruction National Accounts of Holland,” 2016, http://www.cgeh.nl/reconstruction-national-accounts-holland-1500-1800-0. All uses of “GDP” and “GDP/capita” in this paper are real GDP and real GDP/capita from these sources.

9 S. Broadberry, “Accounting for the Great Divergence,” LSE Economic History Working Papers No. 814/13 (London, 2013), 3.

10 A. M. de Pleijt and J. L. van Zanden, “Accounting for the ‘Little Divergence’: What drove economic growth in pre-industrial Europe 1300–1800,” European Review of Economic History 20 (2013): 387–409; also van Zanden, Long Road.

11 J. Humphries and J. Weisdorf, “Unreal Wages? Real Income and Economic Growth in England, 1260–1850,” The Economic Journal 129 (2019): 2867; P. Vries, “What we do and do not know about the Great Divergence at the beginning of 2016,” Historische Mitteilungen der Ranke-Gesellschaft 28 (2016): 248.

12 van Zanden and van Leeuwen, “Reconstruction”; J. L. van Zanden and B. van Leeuwen, “Persistent But Not Consistent: The Growth of National Income in Holland, 1347–1807,” Explorations in Economic History 49 (2012): 119–30.

13 De Pleijt and van Zanden, “Little Divergence”; J. de Vries and A. van der Woude, The First Modern Economy. Success, Failure and Perseverance of the Dutch Economy, 1500–1815 (Cambridge, 1997).

14 J.A. Goldstone, “Efflorescences and Economic Growth in World History: Rethinking the ‘Rise of the West’ and the Industrial Revolution,” Journal of World History 13 (2002): 323–389. Earlier, but less precise versions of this concept include “recurring growth” by E. L. Jones, Growth Recurring: Economic Change in World History (New York, 1988) and “florescences” by M. Hodgson in Rethinking World History: Essays on Europe, Islam and World History, ed. E. Burke III (Cambridge, 1993).

15 The decadal averages shown in Figure 1, and the period growth rates in Table 1, are calculated by the author from the annual data provided in van Zanden and van Leeuwen, “Reconstruction”.

16 Van Zanden and van Leeuwen, “Persistent but not consistent” and “The Character of Growth before ‘Modern Economic Growth’? The GDP of Holland between 1347 and 1807.” CGEH Working Paper Series, no. 4. (Utrecht, March 2011).

17 Van Zanden and van Leeuwen, “Character of growth,” Tables 6 and 7.

18 L. Noordegraaf and J. L. van Zanden, “Early Modern Economic Growth and the Standard of Living: Did Labour Benefit from Holland’s Golden Age?” in A Miracle Mirrored: The Dutch Republic in European Perspective, eds. K. Davids and J. Lucassen (Cambridge, 1995), 434.

19 Broadberry, “Accounting,” Fouquet and Broadberry, “Seven centuries”.

20 The 1340s were used as the last decade for the early fourteenth century because the Black Death created a sharp discontinuity between the 1340s and 1350s. Throughout this paper, decadal levels and growth rates presented as “from Broadberry et al.” were calculated from their annual data (Appendix 5.3, 225–244), unless explicitly attributed to another specific table in Broadberry et al.

21 N. Crafts and T. Mills, “Six Centuries of British Economic Growth: A Time-Series Perspective,” European Review of Economic History 21 (2017): 142.

22 Broadberry et al., British Economic Growth, Table 10.02.

23 Ibid., Table 5.01.

24 Humphries and Weisdorf, “Unreal Wages,” Table A2.

25 C. Muldrew, “‘Th’ancient Distaff’ and ‘Whirling Spindle’: Measuring the Contribution of Spinning to Household Earnings and the National Economy in England, 1550–1770,” Economic History Review 65 (2012): 498–526. Muldrew notes that a huge portion of labor moved into textile production in this period. This supports the findings of L. Shaw-Taylor and E. A. Wrigley, “Occupational Structure and Population Change,” in The Cambridge Economic History of Modern Britain: Volume 1, Industrialisation, 1700–1870, eds. R. Floud, J. Humphries, and P. Johnson (Cambridge, 2014), 53–88, who find that a major shift of employment into manufacturing occurred prior to 1700.

26 R. C. Allen, “English and Welsh Agriculture, 1300–1850: Output, Inputs, and Income,” Economics Working Paper, Nuffield College, Oxford University (Oxford, 2005); G. Clark, “Growth or Stagnation? Farming in England, 1200–1800,” Economic History Review 70 (2017): 1–27; A. Nuvolari and M. Ricci, “Economic Growth in England, 1250–1850: Some New Estimates Using a Demand Side Approach,” Rivista di Storia Economica 39 (2013): 31–53; D. Meredith and D. Oxley, “Food and Fodder: Feeding England, 1700–1900,” Past and Present 222 (2014): 163–214.

27 Nuvolari and Ricci “Growth in England,” following P. Malanima, “The Long Decline of a Leading Economy: GDP in Central and Northern Italy, 1300–1913,” European Review of Economic History 15 (2010): 169–219.

28 Clark, “Growth or Stagnation”; for earlier work see Clark, “Long March” and “The Macroeconomic Aggregates for England, 1209–2008,” in Research in Economic History, ed. A. J. Field, 27 (2010): 51–140.

29 S. Broadberry, B. M. S. Campbell, A. Klein, M. Overton, B. van Leeuwen, B., “Clark’s Malthus Delusion: Response to “Farming in England 1200–1800” ,” Economic History Review (2017): 1–26.

30 R. C. Allen, “Economic Structure and Agricultural Productivity in Europe, 1300–1800,” European Review of Economic History 3 (2000): 1–25.; Allen, “English and Welsh Agriculture.”

31 Note: for Allen and Clark, as their output data is only for England and Wales, I derive per capita output from 1700 onwards using their total output and the population data on England and Wales (not Britain) from E. A. Wrigley, R. S. Davies, J. E. Oeppen, and R. S. Schofield, English Population History from Family Reconstitution, 1580–1837 (Cambridge, 1997), Table A9.1. For Clark, I use agricultural output with his assumption of a 250-day working year.

32 Broadberry et al., British Economic Growth, Table 3.07.

33 Ibid., pp. 86, 99.

34 Meat production from ibid., Tables 3.15 and 7.04; per capita values calculated using population totals from Wrigley et al., English Population History, Table A9.1.

35 Hannah Ritchie, “Which Countries East the Most Meat,” BBC News, February 4 (2019); Caixin, “Charts of the Day: China’s Growing Meat Consumption,” October 12 (2018).

36 Humphries and Weisdorf, “Unreal Wages,” Table A2.

37 P. Warde, Energy Consumption in England and Wales, 1560–2000 (Rome, 2007); E. A. Wrigley, Energy and the English Industrial Revolution (Cambridge, 2010).

38 M. Kelly and C. O’Grada, “Numerare Est Errare: Agricultural Output and Food Supply in England Before and During the Industrial Revolution,” Journal of Economic History 73 (2013): 1132–63.

39 Broadberry et al., British Economic Growth, 261.

40 Meredith and Oxley, “Food and Fodder”.

41 Ibid., 171.

42 Ibid., 212.

43 R. Floud, R. W. Fogel, B. Harris, S.-C. Hong, The Changing Body: Health, Nutrition, and Human Development in the Western World since 1700 (Cambridge, 2011); J. Komlos, “On English Pygmies and Giants: The Physical Stature of English Youth in the Late 18th and Early 19th Centuries,” Research in Economic History 25 (2008): 149–68; F. Cinnirella, “Optimists or Pessimists? A Reconsideration of Nutritional Status in Britain, 1740–1865,” European Review of Economic History 12 (2008): 325–54.

44 N. Crafts and C. K. Harley, “Output Growth and the British Industrial Revolution: A Restatement of the Crafts-Harley View,” Economic History Review 45 (1992):703–30.

45 J. A. Goldstone, “The Demographic Revolution in England: A Reexamination,” Population Studies 49 (1986): 5–33.

46 Broadberry et al., British Economic Growth, 203, 211.

47 Craft and Mills, “Six Centuries,” 142.

48 Broadberry et al., British Economic Growth, 203.

49 These arguments are presented in the works cited in footnotes 9–14.

50 Decade averages calculated from the annual data provided in van Zanden and van Leeuwen, “Reconstruction”.

51 S. Broadberry, H. Guan and D. D. Li, “China, Europe and the Great Divergence: A Study in Historical National Accounting 980-1850,” Journal of Economic History 17 (2018): 47.

52 China GDP/cap data from Broadberry, Guan and Li, “China, Europe,” 46; Chinese population levels from von Glahn, China, 225, 330.

53 J. Ober, The Rise and Fall of Classical Greece (Princeton, NJ, 2015), 84–87; E. Lo Cascio and P. Malanima, “GDP in Pre-Modern Agrarian Economies (1-1820 AD): A Revision of the Estimates,” Rivista de Storia Economica 25 (2009): 400.

54 K. Deng and P. O’Brien, “Establishing Statistical Foundations of a Chronology for the Great Divergence: A Survey and Critique of the Primary Sources for the Construction of Relative Wage-Levels for Ming–Qing China,” Economic History Review 69 (2016): 1057–82.

55 Broadberry, Guan and Li, “Great Divergence” Tables 7 and 8, pp. 988–99.

56 U. Pfister, “The Timing and Pattern of Real Wage Divergence in Pre-Industrial Europe: Evidence from Germany, c. 1500–1850,” Economic History Review 70 (2017): 701–729, Figure 8.

57 Von Glahn, China, 300, 346.

58 Broadberry, Guan and Li, “Great Divergence,” 990.

59 Broadberry, Guan and Li, “Great Divergence”.

60 Meredith and Oxley, “Food and Fodder,” 191.

61 Shaw-Taylor and Wrigley, “Occupational Structure,” 84, 86.