Someeconomic historians use the termmerchant capitalism, a term coined by the German sociologist and economistWerner Sombart in his "The Genesis of Modern Capitalism" in 1902, to refer to the earliest phase in thedevelopment of capitalism as an economic and social system.^[1] However, others argue thatmercantilism, which has flourished widely in the world without the emergence of systems like modern capitalism, is not actually capitalist as such.^[2]

Merchant capitalism is distinguished from more fully developed capitalism by its focus on simply moving goods from a market where they are cheap to a market where they are expensive (rather than influencing the mode of the production of those goods), the lack ofindustrialization, and ofcommercial finance.Merchant houses were backed by relatively small privatefinanciers acting as intermediaries betweensimple commodity producers and by exchanging debt with each other. Thus, merchant capitalismpreceded thecapitalist mode of production as a form ofcapital accumulation. A process ofprimitive accumulation of capital, upon which commercial finance operations could be based and making application of masswage labor and industrialization possible, was the necessary precondition for the transformation of merchant capitalism into industrial capitalism.^{[citation needed]}

Early forms of merchant capitalism developed in the 9th century, during theIslamic Golden Age, while inmedieval Europe from the 12th century.^[3][4][5] The movement towards merchant capitalism across the old municipal and guild system had been apparent in the wool trade as early as the age ofChaucer.^[6] In Europe, merchant capitalism became a significant economic force in the 16th century. Themercantile era drew to a close around 1800, giving way toindustrial capitalism. However, merchant capitalism remained entrenched in some parts of the West well into the 19th century, notably theSouthern United States, where the plantation system constrained the development of industrial capitalism (limiting markets for consumer goods) whose political manifestations prevented Northern legislators from passing broad economic packages (e.g.monetary and banking reform, atranscontinental railroad, andincentives for settlement of the American west) to integrate the states' economies and spur the growth of industrial capitalism.^[7]

• Feudalism
• History of capitalism
• Late capitalism

• John Day, Money and finance in the age of merchant capitalism, 1999.
• J.L. van Zanden, The rise and decline of Holland's economy: merchant capitalism and the labour market, 1993.
• Joseph Calder Miller, Way of death : merchant capitalism and the Angolan slave trade 1730–1830, 1988.
• Elizabeth Genovese &Eugene D. Genovese,Fruits of merchant capital : slavery and bourgeois property in the rise and expansion of capitalism, 1983.
• Paul Frentrop, A History of Corporate Governance, 1602–2002. Amsterdam: Deminor, 2003.
• Andre Gunder Frank, World accumulation, 1492–1789. New York: 1978
• Henri Pirenne, Economic and social history of Medieval Europe. London: Routledge, 1936.
• Michel Beaud, A history of capitalism 1500–2000. New York: Monthly Review Press, 2001.
• Nicolas Vrousalis, Capital without Wage-Labour: Marx's Modes of Subsumption Revisited', Economics and Philosophy. Vol. 34 No 3, 2018.
• Immanuel Wallerstein, The Modern World System: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century, Academic Press, 1997.
• Immanuel Wallerstein, The Modern World System II: Mercantilism and the Consolidation of the European World-Economy, 1600–1750, Academic Press; (June 1980).
• Immanuel Wallerstein, The Modern World System III: The Second Era of Great Expansion of the Capitalist World-Economy, 1730–1840s. Academic Press, 1988.

• History of capitalism
• Medieval economic history
• Economy of the medieval Islamic world

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• Articles with unsourced statements from October 2014