History Institutions and Economic Performance: The Legacy of Colonial Land Tenure Systems in India
AbstractThis paper analyze the colonial institutions set up by the British to collect land revenue in India, and show that differences in historical property rights institutions lead to sustained differences in economic outcomes. Areas in which proprietary rights in land were historically given to landlords have significantly lower agricultural investments, agricultural productivity and investments in public goods in the post-Independence period than areas in which these rights were given to the cultivators. It has been verified that these differences are not driven by omitted variables or endogeneity of the historical institutions, and argue that they probably arise because differences in institutions lead to very different policy choices. [Working Paper No. 003]
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Date of creation: Sep 2010
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British; India; historical; landlords; agricultural; investments; independence; policy choices; history; land tenure; development;
Other versions of this item:
- Abhijit Banerjee & Lakshmi Iyer, 2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," American Economic Review, American Economic Association, vol. 95(4), pages 1190-1213, September.
- NEP-AGR-2010-09-11 (Agricultural Economics)
- NEP-ALL-2010-09-11 (All new papers)
- NEP-CWA-2010-09-11 (Central & Western Asia)
- NEP-HIS-2010-09-11 (Business, Economic & Financial History)
- NEP-PKE-2010-09-11 (Post Keynesian Economics)
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