Roman Empire Provinces

The Effect of the Provinces on the Roman Economy

Introduction

This assignment explores the economic impact that the provinces had on the economy of the early Roman Empire.

Discussion

Background: From Livius (2016) we know that land acquired during the late Roman Republic and Early Empire periods were divided into administrative territories called Provinces. At the start of the Roman Empire, during the time of Augustus, the more settled became senatorial provinces, which were administered by senate appointed proconsuls. The remaining provinces requiring military legions became imperial provinces governed by military representatives (legati) who were appointed by the emperor.

Provinces were generally expected to be self-supporting and provide taxes to support Rome.

Trade and Comparative Advantage: The theory of comparative advantage first developed in 1817 by David Ricardo comes into play when multiple countries can specialize in the products they produce best and leave the rest to other countries to specialize in those areas they may lack. In this way overall efficiencies are achieved improving the economies of both (tutor2u, n.d.). Diverse provinces had different resources and products to add to the greater economy of the Empire which would naturally foster comparative advantage. As the Roman Empire grew the trade between

We know from macroeconomics the monies spent in an economy often follows the multiplier effect (Investopedia, 2017). Thus if one million denerii is spent on architects, managers, stone masons etc. to build an aqueduct they might spend 800k denerii at shops for food and goods. The shop owners might then spend 600k buying from craftsmen and suppliers and for personal needs. This keeps cascading and multiplying the effect of the original spending and thus growing the local Roman