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It’s time for Westernization: the advantages of the early start for long-term economic development at the local level

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  • Sotiris Kampanelis

Abstract

This article examines the ‘early start’ hypothesis at the local level in the context of Australian colonization. It is found that the longer a place experiences economic activity under European management, the higher the level of economic development it achieves in the long-run. A theoretical framework is proposed under which a set of dynamic forces work in aggregate and enhance urban economic development. Results from several robustness checks that account for an array of possible biases validate the initial findings. Overall, the nature of Australian colonization reflects a relatively random variation in the duration of the Western presence at the local level, causing uneven urban development.

Suggested Citation

  • Sotiris Kampanelis, 2019. "It’s time for Westernization: the advantages of the early start for long-term economic development at the local level," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 996-1025.
    • Handle: RePEc:oup:oxecpp:v:71:y:2019:i:4:p:996-1025.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy064
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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • N97 - Economic History - - Regional and Urban History - - - Africa; Oceania

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