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Institutional Development and Colonial Heritage within Brazil

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Author Info
Naritomi, Joana () (Harvard University)
Soares, Rodrigo R. () (Pontifical Catholic University of Rio de Janeiro (PUC-Rio))
Assunção, Juliano J. (Pontifical Catholic University of Rio de Janeiro (PUC-Rio))

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Abstract

This paper analyzes the determinants of local institutions and distribution of political power within a constant 'macro-institutional' setting. We show that characteristics of Brazilian municipalities related to institutional quality and distribution of political power are partly inherited from the colonial histories experienced by different areas of the country. Municipalities with origins tracing back to the sugar-cane colonial cycle – characterized by a polarized and oligarchic socioeconomic structure – display today more inequality in the distribution of endowments (land). Municipalities with origins tracing back to the gold colonial cycle – characterized by a heavily inefficient presence of the Portuguese state – display today worse governance practices and less access to justice. The colonial rent-seeking episodes are also correlated with lower provision of public goods and lower income per capita.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4276.

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Length: 51 pages
Date of creation: Jul 2009
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Handle: RePEc:iza:izadps:dp4276

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Related research
Keywords: institutions; colonial heritage; rent-seeking; geography; Brazil;

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Find related papers by JEL classification:
N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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    Other versions:
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