High level equilibrium trap

The high level equilibrium trap is a concept developed by Benjamin Elman to explain why China never underwent an indigenous Industrial Revolution.

According to Elman, the non-mechanized processes in agriculture and industry in China were so well developed and efficient that they outcompeted early mechanized processes, thus making capital investment in mechanization unprofitable.

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See also: High level equilibrium trap, Agriculture, Capital, China, Economics, Finance, Industrial Revolution, Industry, Machine