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Pre-colonial institutions and economic development in Latin America: Evidence from a new ethnic homeland dataset

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  • Elizalde, Aldo
  • Kampanelis, Sotiris

Abstract

This paper examines the effects of pre-colonial institutions on economic development in Latin America using historical ethnic homelands as the unit of analysis. We construct a newly digitised and georeferenced map of 257 ethnic homelands. Our results show a strong and positive relationship between pre-colonial institutions and contemporary economic development. Beyond the role of pre-existing institutions, our dataset provides a foundation for future research on long-run development in Latin America.

Suggested Citation

  • Elizalde, Aldo & Kampanelis, Sotiris, 2025. "Pre-colonial institutions and economic development in Latin America: Evidence from a new ethnic homeland dataset," Economics Letters, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525003192
    DOI: 10.1016/j.econlet.2025.112482
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    References listed on IDEAS

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    1. William F. Maloney & Felipe Valencia Caicedo, 2016. "The Persistence of (Subnational) Fortune," Economic Journal, Royal Economic Society, vol. 126(598), pages 2363-2401, December.
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    3. Stelios Michalopoulos & Elias Papaioannou, 2013. "Pre‐Colonial Ethnic Institutions and Contemporary African Development," Econometrica, Econometric Society, vol. 81(1), pages 113-152, January.
    4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    5. Nicola Gennaioli & Ilia Rainer, 2007. "The modern impact of precolonial centralization in Africa," Journal of Economic Growth, Springer, vol. 12(3), pages 185-234, September.
    6. Angeles, Luis & Elizalde, Aldo, 2017. "Pre-colonial institutions and socioeconomic development: The case of Latin America," Journal of Development Economics, Elsevier, vol. 124(C), pages 22-40.
    7. Colella, Fabrizio & Lalive, Rafael & Sakalli, Seyhun Orcan & Thoenig, Mathias, 2019. "Inference with Arbitrary Clustering," IZA Discussion Papers 12584, IZA Network @ LISER.
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