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Does franchise extension reduce short-run economic growth? Evidence from New South Wales, 1862-1882

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  • Edwyna Harris

Abstract

Empirical studies have established that franchise extension has positive effects on long-run growth because democratisation leads to greater equality of access to resources. However, in the short-run franchise may lead to a redistribution of resources away from important sectors of an economy. This paper examines this proposition by considering the case of land reform in the colony of New South Wales between 1862 and 1882. Reform was a direct result of franchise extension in preceding years that attempted to reallocate land away from the wool sector to small agriculturalists. Wool producers tried to avoid redistribution of their holdings by expending resources on evading reform legislation. These were resources that could have been invested in productive activities and therefore, it is expected that franchise reduced short-run growth because of the institutional changes it induced. The results presented here confirm that evasion efforts acted to reduce both pastoral sector and total GDP in the short-run.

Suggested Citation

  • Edwyna Harris, 2011. "Does franchise extension reduce short-run economic growth? Evidence from New South Wales, 1862-1882," Monash Economics Working Papers 19-11, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2011-19
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2011/1911franchiseextensionharris.pdf
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    References listed on IDEAS

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    6. Edwyna Harris, 2010. "Scarcity and the Evolution of Water Rights in the Nineteenth Century: the Role of Climate and Asset Type," Monash Economics Working Papers 45-10, Monash University, Department of Economics.
    7. Alston, Lee J. & Libecap, Gary D. & Mueller, Bernardo, 2000. "Land Reform Policies, the Sources of Violent Conflict, and Implications for Deforestation in the Brazilian Amazon," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 162-188, March.
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    9. Lee J. Alston & Edwyna Harris & Bernardo Mueller, 2009. "De Facto and De Jure Property Rights: Land Settlement and Land Conflict on the Australian, Brazilian and U.S. Frontiers," CEPR Discussion Papers 607, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    10. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    11. Alan Dye & Sumner La Croix, 2012. "The Political Economy of Land Privatization in Argentina and Australia, 1810-1850," Working Papers 201207, University of Hawaii at Manoa, Department of Economics.
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    Cited by:

    1. Edwyna Harris, 2011. "The Impact of Institutional Path Dependence on Water Market Efficiency in Victoria, Australia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(15), pages 4069-4080, December.

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    More about this item

    Keywords

    franchise; land reform; evasion; short-run growth;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania

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