What explains the great divergence?

Differences in property rights have been cited as a possible cause of the Great Divergence. This view states that Asian merchants could not develop and accumulate capital because of the risk of state expropriation and claims from fellow kinsmen, which made property rights very insecure compared to those of Europe.

What are Pomeranz factors for Europe’s rise vs China?

Pomeranz argues for the importance of two factors, essentially exogenous “shocks” outside the price system that had important effects on the economy: the distribution of energy-generating resources and the accident that Europe discovered the New World, whereas China did not.

What was the great divergence in America?

The Great Divergence is a term given to a period, starting in the late 1970s, during which income differences increased in the US and, to a lesser extent, in other countries.

Who coined the great divergence?

Samuel P. Huntington
The origins of this dominance is often referred to as the “Great Divergence,” a phrase coined by the late American political scientist Samuel P. Huntington. However, prior to 1800 China was the world leader in technology, commerce, and political power.

What did Pomeranz say about the Great Divergence?

Thus, he explained differences among countries by considering the production model, which in turns depends on the social structure of each nation. Pomeranz (1958) discussed his thesis about the Great Divergence in his book titled “The Great Divergence: China, Europe, and the Making of the Modern World Economy”.

Who was the author of the Great Divergence?

Pomeranz (1958) discussed his thesis about the Great Divergence in his book titled “The Great Divergence: China, Europe, and the Making of the Modern World Economy”.

What was the main cause of the Great Divergence?

Pomeranz argues for the importance of two factors causing the Great Divergence, essentially exogenous “shocks” outside the price system that had important effects on the economy: the distribution of energy-generating resources and the accident that Europe discovered the New World, whereas China did not.

How did Western Europe win the Great Divergence?

“Pomeranz uses a mixture of institutional forces and technological/geological luck to explain how an economic and ecological ‘tie game’ suddenly became a victory for western Europe over China. He combines global imagination with the scientific detail needed to make his points hold firm.