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Institutions and U.S. Regional Development: A Study of Massachusetts and Virginia

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  • Sukkoo Kim
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    Abstract

    The development of the American economy was accompanied by significant spatial income inequalities between the northern and southern regions. While many factors contributed to northern industrialization and southern stagnation, an important factor was differences in their institutions. In the North, a democratic institution fostered growth whereas in the South, an oligarchic institution favored status quo. To gain some insights on the nature and causes of the divergence of these institutions, this paper examines the development of political and legal institutions in Massachusetts and Virginia, the two leading states in the North and the South.

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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13431.

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    Date of creation: Sep 2007
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    Publication status: published as Kim, Sukkoo, 2009. "Institutions and US regional development: a study of Massachusetts and Virginia," Journal of Institutional Economics, Cambridge University Press, vol. 5(02), pages 181-205, August.
    Handle: RePEc:nbr:nberwo:13431

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    1. Mitchener, Kris James & McLean, Ian W, 2003. " The Productivity of US States since 1880," Journal of Economic Growth, Springer, Springer, vol. 8(1), pages 73-114, March.
    2. Acemoglu, Daron & Johnson, Simon & Robinson, James A, 2004. "Institutions as the Fundamental Cause of Long-Run Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4458, C.E.P.R. Discussion Papers.
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    4. Acemoglu, Daron & Robinson, James A, 1998. "Why did the West Extend the Franchise? Democracy, Inequality and Growth in Historical Perspective," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1797, C.E.P.R. Discussion Papers.
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    7. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert W., 1998. "Law and Finance," Scholarly Articles 3451310, Harvard University Department of Economics.
    8. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1369-1401, December.
    9. Egnal, Marc, 1996. "Divergent Paths: How Culture and Institutions Have Shaped North American Growth," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195098662, October.
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    11. Daron Acemoglu & James A. Robinson, 2008. "Persistence of Power, Elites, and Institutions," American Economic Review, American Economic Association, American Economic Association, vol. 98(1), pages 267-93, March.
    12. Kim, Sukkoo & Margo, Robert A., 2004. "Historical perspectives on U.S. economic geography," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 66, pages 2981-3019 Elsevier.
    13. Richard H. Steckel, 1982. "The Economic Foundations of East-West Migration During the Nineteenth Century," NBER Working Papers 0881, National Bureau of Economic Research, Inc.
    14. North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 49(04), pages 803-832, December.
    15. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 14(3), pages 217-232, Summer.
    16. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
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