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Property Rights and Economic Growth: Evidence from a Natural Experiment

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Author Info
Brunt, Liam
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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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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Related research
Keywords: Economic growth; Legal origins; Property rights;

Find related papers by JEL classification:
N47 - Economic History - - Government, War, Law, and Regulation - - - Africa; Oceania
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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This page was last updated on 2009-11-25.

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