The First Globalized Economy: Privateers, Joint-Stock Companies, Commerce and the Rise of the United Provinces

Emmanouil M. L. Economou, Nicholas C. Kyriazis

Abstract


In this paper we analyse the reasons of the rise of the United Provinces (UP) or alternatively, the Dutch Republic, as the first modern European economy since 1500 and afterwards. We focus on some major institutional innovations that were developed in the UP, such as joint-stock companies, privateering, commercial and banking activities, and the first ever recorded stock market. We argue that all these institutions flourished under a political system which was functioning through a series of many democratic elements. Lastly, we argue that the paradigm and the institutions of the UP could be seen as an inspiration for the development and the further political and economic integration of the European Union.

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DOI: https://doi.org/10.5296/ijssr.v3i2.7982

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