Two Paths to Prosperity

Culture and Institutions in Europe and China, 1000–2000

Avner Greif, Joel Mokyr, Guido Tabellini

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English

Princeton University Press
01 March 2026

International economics; Development economics; Economic history

How the social organisation of Europe and China shaped their divergent economic and political trajectories over the past millennium.

In the eleventh century, when Europe was still backward and poor, China was a rich and sophisticated civilisation. Yet Europe became the birthplace of democracy and the Industrial Revolution, driving the Great Enrichment, while China stagnated until the end of the twentieth century and was always ruled by autocracies. Two Paths to Prosperity traces the emergence of two very different social organisations in premodern China and Europe

the clan and the corporation

showing how they were key factors in the economic and political divergence of these two great civilisations.

In this landmark book, three leading economists offer a bold new account of why Europe and China evolved along such different trajectories. In the early Middle Ages, public goods like risk sharing, religious worship, education, and conflict resolution were provided by nonstate organizations in both societies. China increasingly relied on kin-based cooperation within clans, while weaker kinship ties in Europe gave rise to corporations such as guilds, universities, and self-governing towns. Despite performing similar functions, clans and corporations were built on very different principles

with lasting consequences until today.

Providing a novel answer to a fundamental question in economic and political history, Two Paths to Prosperity shows how extended kinship in Chinese society facilitated the consolidation of autocracy and hindered innovation and economic development, and how corporations in Europe influenced emerging state institutions and set the stage for the Industrial Revolution.

By: Avner Greif, Joel Mokyr, Guido Tabellini
Imprint: Princeton University Press
Country of Publication: United States
Dimensions: Height: 235mm, Width: 156mm,
ISBN: 9780691265940
ISBN 10: 0691265941
Pages: 544
Publication Date: 01 March 2026
Audience: College/higher education , Professional and scholarly , Further / Higher Education , Undergraduate
Format: Hardback
Publisher's Status: Forthcoming

Avner Greif is the Bowman Family Endowed Professor Emeritus in Humanities and Sciences and Professor of Economics at Stanford University. Joel Mokyr, winner of the Nobel Prize in Economics, is the Robert H. Strotz Professor of Arts and Sciences and Professor of Economics and History at Northwestern University and Sackler Professor at the Eitan Berglas School of Economics at Tel Aviv University. Guido Tabellini is the Intesa Sanpaolo Chair in Political Economics and Vice President at Bocconi University.