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Conclusions

In: Colonial Theories of Institutional Development

Author

Listed:
  • Daniel Oto-Peralías

    (University of St. Andrews)

  • Diego Romero-Ávila

    (Pablo de Olavide University)

Abstract

This chapter provides some concluding remarks on the analysis of the interaction between initial endowments and colonial origin in the explanation of institutional development in former colonies. This study has proposed a model of two styles of imperialism that integrates the colonial origin and the endowment views explaining current institutions. Our results uncover remarkable heterogeneity that can be read in two ways: the impact of colonizer identity varies with the level of endowments, and the relationship between endowments and institutions is very different across former colonial powers. A couple of important consequences can be derived from this finding. First, the endowment view is not universally applicable. Negative effects of endowments on institutions are only observed for former British colonies and to a lower extent for Spanish and Portuguese colonies, but not for the rest. Second, former British colonies are not always associated with better institutions since former French colonies at least equal the British when the level of endowments is sufficiently high. Our analysis also shows that the form of colonial rule is a key factor to explain current institutional development. In addition, we provide evidence suggesting that European colonialism affected many relevant determinants of current institutions. Factors such as inequality, education and social conflict continue to influence the institutions of former colonies today.

Suggested Citation

  • Daniel Oto-Peralías & Diego Romero-Ávila, 2017. "Conclusions," Contributions to Economics, in: Colonial Theories of Institutional Development, chapter 0, pages 113-115, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-54127-3_9
    DOI: 10.1007/978-3-319-54127-3_9
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