Empire of the Ocean against Empire of the Continent: An economic analysis strategy

Abstract

This paper presents an extended Aristotelian thesis, which relates sea power to the emergence of new institutions and organizations, which affect, in tuIll, economic performance. Lnstitutions embody new knowledge, leading to innovation, "the making" economy more efficient and growth promoting, The Continental System introduced by Napoleon Bonaparte, is analysed as a case study of two different systems in conflict: France, a mainly land based power with a centralized government and an economy directed by the state, and Great Britain, a seapower relying mainly on a market economy, with strong trade, industry and relatively eefficient financial institutions and organizations like the Stock Exchange. Joint-stock Companies, banks etc, dominated by private economic interests. Preconceived economic ideas by Napoleon are analysed as to their influence in shaping the Continental System.