Chesapeake colonies economy. The New England colonies were characterized by tight-knit religious communities and a mixed economy. ANDERSON* AND ROBERT PAUL THOMAS' *Department of Economics, Montana State University, and Hoover Institution, Stanford University; and tDepartment of Economics, University of Washington The economic history of the American colonies remains to date essentially an underdeveloped area This model explains economic growth in the Chesapeake region during the seventeenth century quite well. The Chesapeake region had a one-crop economy, based on tobacco. Slavery: Initially, the lines between indentured servants and enslaved individuals were blurred The Chesapeake Colonies The Chesapeake region, which included both Virginia and Maryland, was basically an economic venture that dealt with tobacco cultivation. The New England provinces had a different economy which included shipping, timber, and production of food crops. English demand for tobacco, initially a luxury product, encouraged migration to the Chesapeake area. The colonial history of the United States covers the period of European colonization of North America from the early 16th century until the unifying of thirteen British colonies and creation of the United States in 1783, during the American War of Independence. The relative autonomy experienced by these colonies contributed to a growing sense of identity and self-governance among the settlers. This contributed to the demand for slave labor in the Southern colonies. In contrast, the Chesapeake colonies focused on agriculture (tobacco) and utilized slave labor, often exhibiting a lower birth rate and harsher social conditions.
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