History & Area Studies / Thematic History / Economic History & Industrialization

On the Eve of Revolution -China and Europe on the Eve of the Industrial Revolution: Markets This

China and Europe on the Eve of the Industrial Revolution: Markets This 2004 research report re-examines the origins of the Industrial Revolution by comparing grain price data from China and Europe between the 17th and 19th centuries. The author challenges the traditional view that “Europe achieved earlier improvements in market efficiency due to its institutional evolution,” showing that before the late 18th century, the degree of market integration in China (especially the Yangtze River Delta) was not significantly different from that in most parts of Europe. The study finds that the marked leap in European market efficiency actually occurred after the industrial revolution had already begun in the 19th century, displaying a sudden, non-evolutionary shift. Although British markets showed outstanding efficiency ahead of other Eurasian regions around 1770, overall, efficient markets appear more as a synchronous outcome or result of modern economic growth, rather than a prerequisite for its occurrence.