Huge dierences james a robinson harvard the emergence

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Unformatted text preview: on and early on without democracy, in the South. Huge di¤erences. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and9, 2009 September Historical Analysis 14 / 24 North and South Korea GDP per capita 14000 12000 10000 8000 South Korea North Korea 6000 4000 2000 0 1950 1960 1970 1980 1990 1998 Sample Size The problem here is the sample size. If there had only been one person working at the brewery on Broad Street who did not die from cholera it would have been di¢ cult to rule out idiosyncratic explanations for this. Note here hat the ‘ Korean experiment’comes as a bundle of things Typically the case, for example “common law origin” comes packaged with “former British colony.” James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and9, 2009 September Historical Analysis 15 / 24 European Colonization as a Source of Institutional Variation After the discovery of the New World and the rounding of the Cape of Good Hope, Europeans dominated many previously diverse societies, and fundamentally a¤ected their institutions. Huge amount of variation in the institutions which arose, running from the United States or Australia, to the Congo or Pakistan. We can use this variation to test whether or not economic institutions have a causal e¤ect on income per-capita. To do this we need to be clear about what caused this variation in institutions and why such di¤erent societies arose in di¤erent places. It is useful to have a simple theory. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and9, 2009 September Historical Analysis 16 / 24 Institutional Variation Theory: those with political power more likely to opt for good institutions when they will bene…t from property rights and investment opportunities. Better institutions more likely when there are constraints on elites. The colonial context: Europeans more likely to bene…t from good institutions when they are a signi…cant fraction of the population, i.e., when they settle Lower strata of Europeans...
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