The East Indian Monopoly and the Transition from Limited Access in England, 1600-1813

41 Pages Posted: 8 Sep 2015 Last revised: 11 Sep 2015

See all articles by Daniel E. Bogart

Daniel E. Bogart

University of California, Irvine - Department of Economics

Date Written: September 2015

Abstract

Many markets are limited by laws and customs enforced by political and religious authorities. North, Wallis, and Weingast (2009) argue that the transition from limited access requires a series of steps like rule of law for elites and the creation of perpetually lived organizations. This paper studies how these steps were taken in England in the case of the East Indian market. The East India Company had a legal monopoly over all trade between England and modern day India and China, but its privileges and property were far from secure. The king and parliament authorized interlopers to enter the Company’s market and forced the Company to make loans to retain its monopoly. A secure monopoly only emerged in the mid-eighteenth century when political stability and fiscal capacity increased. However, liberalization of the market had to wait several more decades. A fiscal and political partnership between the government and the Company kept its monopoly stable until a confluence of events in 1813 brought it to an end.

Suggested Citation

Bogart, Daniel E., The East Indian Monopoly and the Transition from Limited Access in England, 1600-1813 (September 2015). NBER Working Paper No. w21536. Available at SSRN: https://ssrn.com/abstract=2656953

Daniel E. Bogart (Contact Author)

University of California, Irvine - Department of Economics ( email )

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Irvine, CA 92697-5100
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