The Colonial Origins of Comparative Development: An Empirical Investigation
Daron Acemoglu, Simon Johnson, James A. Robinson
American Economic Review · 2001 · Volume 91 · Issue 5
Abstract
We exploit differences in European mortality rates to estimate the effect of institutions on economic performance. Europeans adopted very different colonization policies in different colonies, with different associated institutions. In places where Europeans faced high mortality rates, they could not settle and were more likely to set up extractive institutions. These institutions persisted to the present. Exploiting differences in European mortality rates as an instrument for current institutions, we estimate large effects of institutions on income per capita. Once the effect of institutions is controlled for, countries in Africa or those closer to the equator do not have lower incomes.
Keywords
Macroeconomic Analyses of Economic Development, Comparative Analysis of Economic Systems, Health Production, Economic History: Macroeconomics and Monetary Economics, Growth and Fluctuations: General, International, or Comparative, Comparative Studies of Countries
Enable JavaScript for citation tools and additional paper interactions.