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Université de Lausanne
Faculté des HEC
Département d'économétrie et d'économie politique

Cahier de recherches économiques du DEEP No. 16.02

Jordan Roulleau-Pasdeloup

What Made Great Britain so Great? From the Fiscal-Military State to the First Industrial Revolution

February 4, 2016


Recent research in economic history casts doubts on the role played by good economic institutions in Great Britain after the 1688 Glorious Revolution. What undoubtedly emerged from the latter is a strong Fiscal-Military state under the influence of a Parliament dominated by Whigs. After presenting related empirical evidence, I develop a parsimonious model to understand how the influence of a strong military apparel on international trade can foster the implementation of more productive technologies. When this is the case, development by one country can foster de-industrialization for its trading partners, as has been the case historically in India during the 19th century.

JEL Classification: N13, O14, O41, F51, F54

Keywords: Industrial Revolution, Productivity, Conflict, Imperialism


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