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Does history matter? Colonial education investments in India

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  • Latika Chaudhary
  • Manuj Garg

Abstract

type="main"> Can good policy overcome or alter the effects of history? This question is addressed in this article using unique district-level data for 148 districts of former British India. Controlling for observable differences in geography and income, the ordinary least squares estimates suggest a large and positive effect of colonial expenditures on rural primary education in 1911 on rural literacy up to 1991. However, instrumental variable estimates that control for the endogeneity of colonial investments suggest that the effects of historical spending are significant only up to 1971. Two policy changes can account for these findings: an increase in spending following the 1968 National Education Policy and a greater emphasis on the universal provision of public goods such as schools in the 1970s. Unlike recent studies documenting the persistent effects of historical investments on contemporary outcomes, this study emphasizes how effective policies can overturn the effects of history.

Suggested Citation

  • Latika Chaudhary & Manuj Garg, 2015. "Does history matter? Colonial education investments in India," Economic History Review, Economic History Society, vol. 68(3), pages 937-961, August.
    • Handle: RePEc:bla:ehsrev:v:68:y:2015:i:3:p:937-961
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    2. Chaudhary, Latika & Rubin, Jared & Iyer, Sriya & Shrivastava, Anand, 2020. "Culture and colonial legacy: Evidence from public goods games," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 107-129.
    3. Tirthankar Roy, 2019. "State Capacity and the Economic History of Colonial India," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 59(1), pages 80-102, March.
    4. Paola Azar Dufrechou, 2018. "Electoral politics and the diffusion of primary schooling: evidence from Uruguay, 1914-1954," Working Papers wpdea1801, Department of Applied Economics at Universitat Autonoma of Barcelona.
    5. Amélie Allegre & Oana Borcan & Christa Brunnschweiler, 2025. "Gendered Impacts of Colonial Education: the Role of Access and Norms Transmission in French Morocco," Working Paper Series 20225, Department of Economics, Norwegian University of Science and Technology.
    6. Iyer, Lakshmi & Weir, Coleson, 2025. "The colonial legacy in India: How persistent are the effects of historical institutions?," Journal of Development Economics, Elsevier, vol. 177(C).
    7. Bishnupriya Gupta, 2019. "Falling behind and catching up: India's transition from a colonial economy," Economic History Review, Economic History Society, vol. 72(3), pages 803-827, August.
    8. Montalbo, Adrien, 2021. "Schools without a law: Primary education in France from the Revolution to the Guizot Law," Explorations in Economic History, Elsevier, vol. 79(C).
    9. Fenske, James & Kala, Namrata & Wei, Jinlin, 2023. "Railways and cities in India," Journal of Development Economics, Elsevier, vol. 161(C).
    10. Ewout Frankema & Marlous van Waijenburg, 2023. "What about the race between education and technology in the Global South? Comparing skill premiums in colonial Africa and Asia," Economic History Review, Economic History Society, vol. 76(3), pages 941-978, August.
    11. Gupta, Bishnupriya, 2018. "Falling Behind and Catching up: India’s Transition from a Colonial Economy," CEPR Discussion Papers 12581, C.E.P.R. Discussion Papers.
    12. Monica Bozzano & Gabriele Cappelli, 2019. "The legacy of history or the outcome of reforms? Primary education and literacy in Liberal Italy (1871-1911)," Department of Economics University of Siena 801, Department of Economics, University of Siena.
    13. Ben Salah, Mhamed & Chambru, Cédric & Fourati, Maleke, 2024. "The colonial legacy of education: Evidence from Tunisia," Journal of Comparative Economics, Elsevier, vol. 52(4), pages 773-792.
    14. Nandwani, Bharti & Roychowdhury, Punarjit, 2023. "British Colonialism and Women Empowerment in India," GLO Discussion Paper Series 1275, Global Labor Organization (GLO).
    15. Bharti, Nitin Kumar & Li, Yang, 2024. "The making of China and India in the 21st Century: Long-run human capital a accumulation from 1900 to 2020," ZEW Discussion Papers 24-078, ZEW - Leibniz Centre for European Economic Research.
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    18. Ji Yeon Hong & Christopher Paik, 2018. "Colonization and education: exploring the legacy of local elites in Korea," Economic History Review, Economic History Society, vol. 71(3), pages 938-964, August.

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