Lecture 13

58 tstat 461 tun som mdg mli mrt dza gnq zmb nam caf

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Unformatted text preview: ralization .5 MRT ZMB NAM SEN BEN TZA GHA ZARAGO TGO NER SDN COG MDG NGA CPV UGA STP GMB GIN TCD BFA CMR GNQ GNB KEN CAF DJI MLI CIV 0 GAB −4 SOM SLE LBR 0 5 Log Total Slave Exports per 1,000 km sq of Land Area 11 5 Log Slave Exports and Domestic Slavery in the 19th Century Prevalence of Domestic Slavery in 19th Century 1 2 3 4 (beta coef = .58 , t−stat = 4.61) TUN SOM MDG MLI MRT DZA GNQ ZMB NAM CAF UGA NER TCD EGY CIV BFA CMR TGO AGO ETH SLE NGA MOZ COG LBR GIN MAR SDN GAB MWI TZA BEN GHA SEN GNB ZWE RWA BDI KEN ZAF 0 SWZ LSO BWA −4 0 5 Log Total Slave Exports per 1,000 km sq of Land Area Data source: Ethnographic Atlast and author’s calculations 10 Channels: Institutions and Development Yi = α1 + β1 Qi + C′ δ1 + ε1i i Qi = α2 + Z′ βz + C′ δ2 + ε2i i i Y – Log real per capita GDP in 1998 Q – Quality of domestic institutions C – Indicator variables for identity of colonizer Z – Instruments: slave exports or distance measures Table 12: IV regressions. Instrumenting rule of law. (1) (2) (3) (4) (5) (6) Second Stage. Dependent variable is log income 1998 Rule of law 1998 .66 1.50 1.59 (4.32) (3.90) (3.91) (4.06) (3.42) No No No Yes Yes Yes 26.6 15.2 4.11 3.63 2.86 50 Number obs. .69 20.2 F-stat 1.36 (4.50) Colonial dummies 1.30 50 50 50 50 50 First Stage. Dependent variable is rule of law 1998 ln(exports/area) −.09 −.08 (−4.94) (−4.67) Atlantic distance .02 (3.30) Over-id test (p-value) (.68) .03 .03 (2.14) Hausman test (p-value) .01 (1.38) F-stat (1.38) .02 Red Sea distance .01 (1.93) Saharan distance (2.98) .01 Indian distance .02 (2.30) 24.4 4.03 7.16 3.44 .03 .02 .73 .51 .47 .27 Conclusions • Constructed country-level slave export estimates. • Estimated a robust relationship between slave exports and subsequent economic development. • Used IV to establish causality and to correct for measurement error. • Initial evidence suggests that the relationship between the slave trade and current development is through property rights and the rule of law....
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This document was uploaded on 02/28/2014 for the course ECON 2328 at Harvard.

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