State antiquity and economic progress: cause or consequence?

Abstract

Legacy of statehood is seen as a positive influence on economic growth and development. The state antiquity literature argues that the more experience a country has with state institutions, the more beneficial the current state’s impact on development can be. While not discounting the advantages that a well-functioning state can provide for economic progress, we draw attention to an alternate mechanism: the presence of private institutions and practices that may contribute to both state formation and economic development. Rather than state antiquity being the lone cause of economic progress, states may benefit from already existing configurations of rules and conventions that were developed privately. Thus, we argue that order can precede and coincide with the state. We support our claim with qualitative evidence using historical case studies.