Advancement of Agricultural techniques:
- Development and widespread adoption of improved technologies like the iron plough, watermills and irrigation systems led to increased agricultural production and surplus generation.
Expansion of Trade:
- The Tang and Song dynasties witnessed a significant expansion of both internal and international trade.
- Improved transportation networks, land and waterways promoted commerce.
- The Silk Road played a crucial role in fostering trade with central and west Asian regions.
Specialization of Labor and Urban Growth:
- With rising agricultural productivity, surplus labor moved into various non- agricultural occupations, leading to specialization of labor.
- Cities grew in size and new urban center emerged. Craftsmanship and manufacturing flourished.
Government policies:
- The Tang and Song governments promoted economic growth by creating a favorable environment.
- Stable and efficient administrations, reduction of taxation rate, and development of infrastructures supported economic prosperity.
- Emphasis was given to education, science and technology.
Rise of Commerce class and Guilds:
- During the Tang and Song eras, the merchant and merchant guilds played a significant role in economic activities.
- These guilds helped facilitate trade, regulated prices and provided resources for merchants.
Growth of Urbanization and Markets:
- The period witnessed rapid urban growth and increase in the number of market towns.
- Markets provided various goods and services to the growing population.
Development of Banking System:
- Chinese banknotes (jiaozi) were first introduced during the Song era. These circulated widely and facilitated financial transaction and trade.
Increased Cultural Exchange:
- The Tang and Song dynasties were renowned for their cultural achievements and advancement. International cultural exchange, such as through the Silk Road, stimulated knowledge sharing and economic interactions.
Technological Innovation:
- Innovation in various industries like paper making, porcelain, medicine and engineering improved productivity and further contributed to economic prosperity.