Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296018 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 10929
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
In the latter half of the fourth millennium BC, our ancestors witnessed a remarkable transformation, progressing from simple agrarian villages to complex urban civilizations. In regions as far apart as the Nile Valley, Mesopotamia, Central Asia, and the Indus Valley, the first states appeared together with writing, cities with populations exceeding 10,000, and unprecedented socio-economic inequalities. The cause of this "Urban Revolution" remains unclear. We present new empirical evidence suggesting that the discovery of bronze and the ensuing long-distance trade played a crucial role. Using novel panel data and 2SLS techniques, we demonstrate that trade corridors linking metal mines to fertile lands were more likely to experience the Urban Revolution. We propose that transit bottlenecks facilitated the emergence of a new taxing elite. We formally test this appropriability theory and provide several case studies in support.
Subjects: 
urban civilizations
long-distance trade
metal trade
transit bottlenecks
JEL: 
D02
F10
H10
N40
O43
Document Type: 
Working Paper
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