ECON 234 Chapter 2: Allen Global Economic History... Chapter 2
Document Summary
C"s = country or countries (depends on the context of the sentence) Geography (significance depends on tech & economic opportunities; tech can reduce burden of bad geography > i. e. japan, s. korea) Arbitrary govt > leads to higher taxes, regulation & corruption > which is bad b/c it reduces incentive to produce i. e. absolutists monarchies in france & spain or empires like china, aztec & rome. [stifled economic activity by prohibiting international trade, threatening property & life] i. e. successful economics were republics like netherlands & england who got rid of their monarchs/regulated power of monarchs (netherlands by becoming a republic & England by empowering parliament: other economists argue that absolutist monarchs & depotism can be successful > b/c they promotes peace, good govt & regional specialization > causing smithian growth (rise in national income) However, the most immediate/important causes of unequal development are technological change, globalization & economic policy.
