"Trade, conflict, institutional reform and economic growth: The long 18th century expansion of world trade and the Iberian-American frontier."

Pastore, Mario (1998): "Trade, conflict, institutional reform and economic growth: The long 18th century expansion of world trade and the Iberian-American frontier.". Published in: Historia Paraguaya. Anuario de la Academia Paraguaya de la Historia No. 1 (2002): pp. 1-51.

Abstract

The basic theorems of international trade lead economists to expect trade and autarky to result in income expansion and contraction. Likewise, world trade fluctuations may be expected to lead to fluctuations in domestic income. These theorems assume, however, that trade expansion and contraction leave the assumed domestic institutional framework unaffected. However, recent contributions to the political economy literature suggest that changing trade exposure may lead to political cleavages. One would therefore expect to see secular changes in world trade to conceivably result in domestic institutional change. The eighteenth century expansion of world trade and inter imperial conflicts, I will argue here, did in fact lead to institutional changes in both the British and Spanish empires in North and South America, respectively. Here I will consider the changes in the Spanish colonial administration known as the Bourbonic Reforms and whether they appear to have had any domestic effects in a distant, isolated province on the margins of the Spanish empire in South America.

• Item Type: MPRA Paper
• Language: English
• Keywords: Changing trade exposure; trade and conflict; institutional reform; Late colonial Spanish-American economic growth; Iberian American Frontier, Paraguay, Brazil, River Plate; forced labor decline, rise of small peasantry and military obligations.
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; P - Economic Systems > P1 - Capitalist Systems > P14 - Property Rights; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; N - Economic History > N5 - Agriculture, Natural Resources, Environment, and Extractive Industries > N56 - Latin America ; Caribbean

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