Economic history - Key Literature and Resources

Key Works in Economic History: A Student's Guide Introduction Economic history is the study of how economies have developed, changed, and grown over time. To understand this field, you'll encounter several major works that have shaped how economists and historians think about economic change. This guide introduces you to the foundational texts and important surveys in the discipline. Rather than memorizing a list of books, focus on understanding what each major work contributes to our understanding of economic history—this is what you'll actually need to know for exams and assignments. Foundational Texts That Defined the Field Karl Polanyi's The Great Transformation: Origins of Our Time (1944) is a critical starting point for understanding economic history. Polanyi argued that modern capitalist markets are not a natural state of human society, but rather a specific historical creation. His central claim—that the 19th-century self-regulating market economy was fundamentally unstable and eventually collapsed—provides a key framework for understanding how economies are embedded in social and political institutions. When you encounter discussions about how economies aren't purely driven by supply and demand but shaped by governments and societies, you're seeing Polanyi's influence. General Surveys: Understanding Economic Development Across Time and Space When you need a broad overview of economic history, several comprehensive surveys are essential reading. Robert C. Allen's Global Economic History: A Very Short Introduction (2011) provides exactly what its title suggests—a concise global perspective. Allen traces how different regions industrialized and why some countries became wealthy while others remained poor. This work is particularly useful for understanding the "Great Divergence" (the increasing gap between rich and poor nations starting in the 18th century). Gregory Clark's A Farewell to Alms (2007) takes a provocative approach, arguing that before the Industrial Revolution, economic growth was impossible regardless of policy choices. Clark examines how living standards stagnated for centuries, with population growth consuming any productivity gains. This challenges students to think about what actually changed to make sustained growth possible. Ronald Findlay and Kevin O'Rourke's Power and Plenty (2007) emphasizes international trade and military power as drivers of economic history. Their argument—that trade, war, and political power have been inseparable—helps explain why economic history is not just about markets but about geopolitical competition. Explaining Economic Growth and the Divergence Between Nations The most pressing question in economic history is: Why do some nations grow wealthy while others remain poor? Several major works directly address this. Daron Acemoglu and James A. Robinson's Why Nations Fail (2012) argues that institutions matter most. They distinguish between "extractive institutions" (which concentrate power and wealth) and "inclusive institutions" (which distribute opportunity broadly). Their central claim is that inclusive institutions—secure property rights, rule of law, and broad political participation—allow sustained economic growth. This work helps explain why countries with similar natural resources can have vastly different economic outcomes. Alexander Gerschenkron's Economic Backwardness in Historical Perspective (1962) introduced the concept that late developers face different challenges than early developers. Countries that industrialize after others already have (like Russia or Germany) can't follow the exact same path as Britain. Gerschenkron argued that backward countries often needed strong government intervention and access to capital to "catch up." This is essential for understanding why different countries pursued different development strategies. Kenneth Pomeranz's The Great Divergence (2000) directly challenges the assumption that Europe was always more advanced than Asia. He argues that before 1800, China and Europe were roughly equal in technological sophistication and living standards. What changed? According to Pomeranz, access to coal and colonial resources gave Europe a crucial advantage. This work is important for understanding that Western dominance was not inevitable or rooted in inherent European superiority. Robert J. Gordon's The Rise and Fall of American Growth (2016) examines a specific case—the United States—but with implications for broader economic history. Gordon argues that the period 1870-1970 was a unique era of rapid innovation and growth (automobiles, electricity, antibiotics), while growth has slowed since. Understanding why growth accelerated and decelerated in specific periods is crucial for economic history. Joel Mokyr's The Lever of Riches (1990) emphasizes technology and innovation as drivers of economic growth. Mokyr argues that technological change isn't random; it's influenced by economic incentives, culture, and institutions. This helps explain how some societies develop innovations while others don't—even when facing similar problems. Amartya Sen's Development as Freedom (1999) expands how we think about economic development beyond GDP per capita. Sen argues that development should be understood as expanding human capabilities and freedoms. This work is important for understanding that economic history isn't just about measuring growth in dollars, but about human welfare. Business and Institutional Organization Alfred D. Chandler Jr.'s The Visible Hand (1977) examines how modern business organizations developed. Chandler argues that the "managerial revolution"—the rise of large corporations with professional managers (rather than family ownership)—was crucial to American economic growth. The "visible hand" of management replaced the "invisible hand" of markets in coordinating large-scale production. Understanding how business organization changed is essential for grasping how economies actually function. Comprehensive Textbooks and Modern Surveys Beyond the major foundational works, several comprehensive surveys are valuable for getting the full picture. Rondo Cameron and Larry Neal's Concise Economic History of the World (2003) offers a global overview spanning from paleolithic times to the present. This work is useful as a reference that traces economic systems across different time periods and regions. C. M. Cipolla's Between History and Economics (1991) specifically introduces the field of economic history to new students, explaining what methods and approaches historians use when studying economies. <extrainfo> Additional Resources Several more specialized resources can deepen understanding of specific topics: Peter Temin's 2014 work on new economic history reviews how the field has evolved and where it's heading. The "new economic history" (also called cliometrics) uses statistical and mathematical methods to test historical claims about economic growth and development. Joel Mokyr's 2003 Oxford Encyclopedia entry provides an encyclopedia-style overview of major developments in the field. Matthias Blum and Christopher L. Colvin's 2018 edited volume An Economist's Guide to Economic History presents modern approaches and case studies, showing how contemporary economists apply historical analysis. Kent Deng's 2014 survey on Chinese economic history illustrates how economic history examines specific regions, questioning assumptions about Western dominance and exploring why China's economy, despite early sophistication, didn't industrialize as early as Europe. </extrainfo>