Trading Costs, the Expansion of Trade and Economic Growth in Pre-Industrial Europe

Dartmouth, Dept. Of Economics, Working Paper 00-05

35 Pages Posted: 11 Jan 2001

See all articles by Meir Kohn

Meir Kohn

Dartmouth College - Department of Economics

Date Written: January 2001

Abstract

In pre-industrial Europe, growth was driven by the expansion of trade, and the expansion of trade was driven by falling trading costs. This paper discusses the mechanisms linking these processes: profit-seeking behavior by merchants, changes in the organization of production, technological progress, and urbanization. It then reviews the fluctuations in European economic growth between 1000 and 1600 and argues that these can best be understood in terms of changing trading costs.

JEL Classification: F10, F43, N13, N73, O10, O31, O40, O52, R11

Suggested Citation

Kohn, Meir G., Trading Costs, the Expansion of Trade and Economic Growth in Pre-Industrial Europe (January 2001). Dartmouth, Dept. Of Economics, Working Paper 00-05, Available at SSRN: https://ssrn.com/abstract=255569 or http://dx.doi.org/10.2139/ssrn.255569

Meir G. Kohn (Contact Author)

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