| Book Review | The American Historical Review, 105.2

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| Book Review | The American Historical Review, 105.2 | The History Cooperative

Book Review

Canada and the United States

Marc Egnal. New World Economies: The Growth of the Thirteen Colonies and Early Canada. New York: Oxford University Press. 1998. Pp. xix, 236. $49.95.

Marc Egnal compares economic development in the Thirteen Colonies and Canada from 1665 to 1783. Using a modified staple approach, Egnal suggests that changes in Britain and France influenced long swings in colonial export sectors in terms of trade and capital flows. Metropolitan cycles further affected "additions to the capital stock, gains in productivity, and patterns of culture" (p. 7). 1

Colonial economic growth varied regionally. Gradual economic expansion in Britain (1713–1745) and rapid expansion (1745–1783) provided the consumer demand and credit that allowed the Thirteen Colonies to grow. Between 1713 and 1730, northern agriculture suffered due to poor West Indies markets. Farmers did not invest in productivity, and colonial shipping slumped. Between 1745 and 1760, rising prices for West Indies sugar allowed planters to demand more northern foodstuffs. Southern European and continuing British demand for foodstuffs and other semi-processed industrial inputs ensured slower growth after 1760. Agricultural productivity and colonial manufacturing increased, although credit contracted and shipping suffered as the West Indies trade declined after 1760. . . .

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