Joint work with Yu (Max) Hao, Peking University
Can state erosion occur alongside economic development? While agricultural surplus has long been considered essential for state formation, recent studies increasingly highlight output appropriability as the key factor. This study employs the introduction of maize and sweet potato to historical China as a natural experiment to investigate the relation between agricultural technology and state capacity. Maize, being a cereal grain, is legible and appropriable, while sweet potato is not. Evidence shows that, while both crops spurred population growth and economic development, their impact on fiscal capacity diverged significantly. This study illustrates a case where state erosion could coincide with economic growth and underscores the role of production legibility in shaping state capacity.