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Property Rights and Economic Growth: Evidence from a Natural Experiment

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  • Brunt, Liam
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    Abstract

    In 1795 the British took control of the Cape colony (South Africa) from the Dutch; and in 1843 they exogenously changed the legal basis of landholding, giving more secure property rights to landholders. Since endowments and other factors were held constant, these changes offer clean tests of the effects on economic growth of colonial identity and secure property rights. The effects of both changes were immediate, positive and large. Other legal and institutional changes, such as the move to a common law system in 1827, had no such effects on economic growth.

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    Bibliographic Info

    Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6404.

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    Date of creation: Sep 2007
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    Handle: RePEc:cpr:ceprdp:6404

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    Keywords: Economic growth; Legal origins; Property rights;

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    Cited by:
    1. Pääkkönen, Jenni, 2010. "Economic freedom as driver of growth in transition," Economic Systems, Elsevier, vol. 34(4), pages 469-479, December.
    2. Catherine Paul & Marcelo O. Torres & Ronald Felthoven, 2009. "Fishing Revenue, Productivity and Product Choice in the Alaskan Pollock Fishery," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(4), pages 457-474, December.
    3. Rasha Hashim Osman & Constantinos Alexiou & Persefoni Tsaliki, 2012. "The role of institutions in economic development: Evidence from 27 Sub-Saharan African countries," International Journal of Social Economics, Emerald Group Publishing, vol. 39(2), pages 142-160, January.

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