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National Institutions and Subnational Development in Africa

Author

Listed:
  • Michalopoulos, Stelios

    (Brown University and NBER)

  • Papaioannou, Elias

    (London Business School, NBER and CEPR)

Abstract

We investigate the role of national institutions on subnational African development in a novel framework that accounts both for local geography and cultural-genetic traits. We exploit the fact that the political boundaries in the eve of African independence partitioned more than two hundred ethnic groups across adjacent countries subjecting similar cultures, residing in homogeneous geographic areas, to different formal institutions. Using both a matching-type and a spatial regression discontinuity approach we show that differences in countrywide institutional structures across the national border do not explain within-ethnicity differences in economic performance, as captured by satellite images of light density. The average non-effect of national institutions on ethnic development masks considerable heterogeneity partially driven by the diminishing role of national institutions in areas further from the capital cities.

Suggested Citation

  • Michalopoulos, Stelios & Papaioannou, Elias, 2013. "National Institutions and Subnational Development in Africa," CAGE Online Working Paper Series 154, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:154
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    References listed on IDEAS

    as
    1. Stelios Michalopoulos & Elias Papaioannou, 2016. "The Long-Run Effects of the Scramble for Africa," American Economic Review, American Economic Association, vol. 106(7), pages 1802-1848, July.
    2. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    3. Michalopoulos, Stelios & Papaioannou, Elias, 2010. "Divide and Rule or the Rule of the Divided? Evidence from Africa," CEPR Discussion Papers 8088, C.E.P.R. Discussion Papers.
    4. Stelios Michalopoulos & Alireza Naghavi & Giovanni Prarolo, 2012. "Trade and Geography in the Origins and Spread of Islam," Working Papers 2012-12, Brown University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Africa; Borders; Ethnicities; Development; National Institutions; Regression Discontinuity;
    All these keywords.

    JEL classification:

    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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