2021 ◽  
Vol 100 (3) ◽  
pp. 419-436
Author(s):  
T. C. Smout

In seventeenth-century Scotland textiles were made in most districts and marketed widely at home and overseas. Woollens and linens, yarn, cloth, bonnets and stockings, with clear regional specialisations, were manufactured, but they were all of low cost and quality. Comparative advantage came from low rural wages. The wide distribution and character of textile production in the seventeenth century proved of great importance for post-Union success. Among imports the variety and social spread of luxury widened and deepened, though demand was restricted to the upper classes and the middling orders in Edinburgh and other large burghs. The seventeenth century, especially the second half, was a time of widening consumption of exotic articles such as tobacco, sugar and coffee among consumables, Asian silks and cottons (and their imitations) as articles of dress, and wall-hangings and pictures as décor. The social anxiety and economic stress this engendered gave rise to sumptuary laws like that of 1681. These had limited impact, though imports remained sensitive to tariffs. The letters of Andrew Russell, a merchant resident in Rotterdam between 1668 and 1697, demonstrate how this trade was carried out in both directions, and how the market responded to governmental attempts at control.


World Economy ◽  
2005 ◽  
Vol 28 (6) ◽  
pp. 823-839 ◽  
Author(s):  
Colin A. Carter ◽  
Andrew J. Estrin

demand for producer goods (that is, implements, fertilisers, etc.) was largely left unsatisfied, a fact which eroded the peasants' productive basis. The exchange with the peasantry became conditioned by the following three interlocking phenomena: (1) the reduction in relative and in absolute terms of official marketing of crops as result of the rapid expansion of parallel markets; (2) the galloping inflation of prices in the parallel markets; and (3) the consequent rapid depreciation of the currency and the increased reluctance to accept the metical in exchange for sale of goods. Although the surface appearances of these phenomena were generally recog-nised, the explanation of the underlying mechanisms was by no means clear. The dominant explanation of the problem came from the ministry of internal commerce which was in its day-to-day operation more directly con-fronted with the problem. According to this view the nature of the problem was the withdrawal from the market by the peasantry since money no longer bought goods. Hence, the payment of rural wages and the buying of cash crops channelled a volume of money into the economy far in excess of available pro-ducer and consumer goods directed to the peasantry. Cash balances therefore accumulated over time and the stimulus to further production was blunted. The fact that the supply of commodities destined to be traded with the peasantry was, in terms of value, far in excess of the official marketing of crops was the often quoted proof that peasants simply ran down cash balances to buy goods and did not produce more for exchange. This view often overlooked the impact of the demand springing from the wage bill and, hence, directly equated the difference between the supply of goods to the peasantry and the goods obtained in return with the running down of cash balances accumulated by the peasantry. The problem therefore was seen as one of an excessive volume of money being held in the rural areas: peasants had too much money relative to the available supply of goods. Therefore, they withdrew from the market and preferred to buy up any supplies forthcoming with the money in hand rather than through production. Implicit in this view was a conception of a single circuit of exchange between the state sector and the peasantry in which the state buys with money either cash crops or labour power, and subsequently the peasantry buys consumer and producer commodities from the state sector (with or without the intermediation of private trade). If both parts do not balance in value, idle balances of money will build up in the hands of the peasantry and over time blunt the incentive of production. The preoccupation was thus with the stock of money in the hands of the peasantry (as a measure of frustrated demand) and little attention was paid to its velocity since it was implicitly assumed that these balances remained idle (stuck in the peasants' pockets). Therefore, concerning economic policy, a solution was sought in the direction of neutralising the interference of accumulated balances by linking sale and purchase together. Hence, commodities would be sold to the peasantry only in exchange for the purchase of cash crops. Similarly, state farms would guarantee a certain part of the wage in kind to assure the flow of labour.


This article examined the level and recent trends in rural wages, the extent of the wage gap and inequality across the states in agriculture. Recent trends showed a continuous and persistent rise in real wages for agricultural and non-farm activities in rural areas. Inequality in wage rate was lower among diverse agricultural operations within and across the year(s). Regression analysis indicated that the wage rate was agriculture was positively influenced by productivity, period and labour availability. Effective implementation of minimum wage law and equal pay for work of equal value would reduce the wage gap and inequality.


2013 ◽  
Vol 12 (1) ◽  
pp. 166-190 ◽  
Author(s):  
Hengyun Ma ◽  
Jikun Huang ◽  
Les Oxley

The paper considers the role and determinants of capital formation in Chinese agriculture and, in particular, the effects of capital formation on agricultural total factor productivity (TFP) growth. The results show that capital investment in agriculture by both government and farmers has risen significantly in the past two and a half decades, particularly in recent years. As China remains in the early stages of agricultural policy transition, its political economy would suggest that there will likely be more public investment in, and more subsidies to, agriculture in the coming years. Increased public investment in agriculture appears to have also induced increased farmers' capital formation in agriculture. Credit policy, the overall growth of farmer's income, rural wages, and comparative advantage of commodities are important factors that may facilitate farmers' investment in agriculture. The results also show that the successful growth of China's agriculture has been associated with its high TFP growth. Both public and private agricultural capital formations have played an important role in raising China's agricultural productivity. The TFP decomposition analyses show that technological change is a primary driver of the TFP growth in China's agriculture.


2013 ◽  
Vol 21 (3) ◽  
pp. 4-24 ◽  
Author(s):  
Qiang Li ◽  
Jikun Huang ◽  
Renfu Luo ◽  
Chengfang Liu
Keyword(s):  

1986 ◽  
Vol 22 (3) ◽  
pp. 93-105 ◽  
Author(s):  
Dipak Mazumdar ◽  
M. Husein Sawit
Keyword(s):  

1985 ◽  
Vol 7 (1) ◽  
pp. 45 ◽  
Author(s):  
Alan Richards ◽  
Philip L. Martin

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