Volume 20, Issue 2 (7-2015)                   JPBUD 2015, 20(2): 143-180 | Back to browse issues page

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Khorrami Moghadam A, Karimi Moughari Z. A Comparative Investigation of Iran's Economic Performance during Safavid Era and Europe in the 17th Century through an Institutinal Approach. JPBUD 2015; 20 (2) :143-180
URL: http://jpbud.ir/article-1-1098-en.html
1- mazandaran, University of Mazandaran, Iran , Azadehkhorami69@gmail.com
2- University of Mazandaran, Iran, University of Mazandaran, Iran
Abstract:   (5638 Views)

The advent of the industrial revolution in the 17th century in Europe was concurrent with the governance of the safavid dynasty in Iran. In that period, Iran succeeded to achieve growth and prosperity comparable to what other powerful societies did in that time; but this did not last long. Iran’s economic situation deteriorated and at the beginning of development of capitalism in Europe, imbalance between Iran and the west began to heighten. In this study, we investigate the reasons of vicissitudes of the economic performance in safavid era; also we try to answer why there were no structural changes in the Iran’s economy, in the level of institutional analysis. To this end, we use the institutional approach, specifically focusing on North’s ideas about the order of open and limited accessibility. The results demonstrate that in safavid era, due to the lack of law, flaw of civil institutions and absolute sovereignty of autocratic monarchy, there was no open access to political and economic markets, and this fact hindered the technical progress and technological development. Furthermore, the unsafety of artisans and craftsmen, and at the presence of high transaction costs, there were no proper room for productive investments and creative production of new commodities and services. Whereas, in Europe there was a gradual progressive transition to proper environment and appropriate contexts which provided the rule of law and open accessibility to political and economic markets; this in turn helps to the advancement of formation of facilitating institutions which motivates investments, market activities and industrial production.

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Type of Study: Research |
Received: 2014/12/2 | Accepted: 2016/04/27 | ePublished: 2016/04/27

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