IDEAS home Printed from https://ideas.repec.org/p/col/000089/015445.html
   My bibliography  Save this paper

The Long Shadow of the Past: Political Economy of Regional Inequality in Colombia

Author

Listed:
  • Leopoldo Fergusson
  • Carlos Molina
  • James A. Robinson
  • Juan F. Vargas

Abstract

We study the nature of regional inequality in Colombia over the past 200 years. The main empirical fact is that regional inequality has been highly persistent despite the large changes that have taken place and the modernization of the society. We show that regional inequality is highly correlated with significant within-country differences in economic and political institutions, which are themselves highly persistent over the same period. We propose a tentative political economy theory of why the spatial distribution of institutions and economic outcomes has been so persistent over time.

Suggested Citation

  • Leopoldo Fergusson & Carlos Molina & James A. Robinson & Juan F. Vargas, 2017. "The Long Shadow of the Past: Political Economy of Regional Inequality in Colombia," Documentos CEDE 15445, Universidad de los Andes, Facultad de Economía, CEDE.
  • Handle: RePEc:col:000089:015445
    as

    Download full text from publisher

    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/8682/dcede2017-22.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Meisel, Adolfo, 2014. "No Reversal Of Fortune In The Long Run: Geography And Spatial Persistence Of Prosperity In Colombia, 1500-2005," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 32(3), pages 411-428, December.
    2. Daron Acemoglu & Camilo García-Jimeno & James A. Robinson, 2015. "State Capacity and Economic Development: A Network Approach," American Economic Review, American Economic Association, vol. 105(8), pages 2364-2409, August.
    3. Besley, Timothy & Persson, Torsten & Sturm, Daniel, 2010. "Political competition, policy and growth: theory and evidence from the United States," LSE Research Online Documents on Economics 121718, London School of Economics and Political Science, LSE Library.
    4. Daron Acemoglu & James A. Robinson, 2008. "Persistence of Power, Elites, and Institutions," American Economic Review, American Economic Association, vol. 98(1), pages 267-293, March.
    5. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    6. Acemoglu, Daron & García-Jimeno, Camilo & Robinson, James A., 2012. "Finding Eldorado: Slavery and long-run development in Colombia," Journal of Comparative Economics, Elsevier, vol. 40(4), pages 534-564.
    7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2012. "The Colonial Origins of Comparative Development: An Empirical Investigation: Reply," American Economic Review, American Economic Association, vol. 102(6), pages 3077-3110, October.
    8. John Luke Gallup & Alejandro Gaviria & Eduardo Lora, 2003. "Is Geography Destiny? Lessons from Latin America," World Bank Publications, The World Bank, number 14454, September.
    9. Leopoldo Fergusson & Juan F. Vargas, 2013. "Don't make war, make elections: Franchise extension and violence in XIXth-century Colombia," Documentos de Trabajo 10545, Universidad del Rosario.
    10. Daron Acemoglu & James A. Robinson & Rafael J. Santos, 2013. "The Monopoly Of Violence: Evidence From Colombia," Journal of the European Economic Association, European Economic Association, vol. 11, pages 5-44, January.
    11. Nathan Nunn, 2008. "The Long-term Effects of Africa's Slave Trades," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(1), pages 139-176.
    12. Adolfo Meisel Roca., 2012. "¿Quién manda aquí?Poder regional y participación de la Costa Caribe en los gabinetes ministeriales, 1900-2000," Cuadernos de Historia Económica 31, Banco de la Republica de Colombia.
    13. Leopoldo Fergusson & Juan F. Vargas & Mauricio A. Vela, 2013. "Sunlight Disinfects? Free Media in Weak Democracies," Documentos CEDE 10487, Universidad de los Andes, Facultad de Economía, CEDE.
    14. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    15. Miriam Bruhn & Francisco A. Gallego, 2012. "Good, Bad, and Ugly Colonial Activities: Do They Matter for Economic Development?," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 433-461, May.
    16. Daron Acemoglu & Francisco A. Gallego & James A. Robinson, 2014. "Institutions, Human Capital, and Development ," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 875-912, August.
    17. Nathan Nunn & Leonard Wantchekon, 2011. "The Slave Trade and the Origins of Mistrust in Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3221-3252, December.
    18. Ximena Cadena, 2014. "Colombia en Movimiento 2010-2013," Libros en Línea 14162, Universidad de los Andes, Facultad de Economía, CEDE.
    19. Adolfo Meisel Roca, 2011. "El PIB de la república de la Nueva Granada en 1846: ¿Qué nos dice acerca del impacto económico de la independencia?," Cuadernos de Historia Económica 8892, Banco de la República, Economía Regional.
    20. Mitchener, Kris James & McLean, Ian W, 2003. "The Productivity of US States since 1880," Journal of Economic Growth, Springer, vol. 8(1), pages 73-114, March.
    21. Wright, Gavin, 2013. "Sharing the Prize: The Economics of the Civil Rights Revolution in the American South," Economics Books, Harvard University Press, number 9780674049338, Spring.
    22. Sánchez, Fabio & López-Uribe, María del Pilar & Fazio, Antonella, 2010. "Land Conflicts, Property Rights, and the Rise of the Export Economy in Colombia, 1850–1925," The Journal of Economic History, Cambridge University Press, vol. 70(2), pages 378-399, June.
    23. Daron Acemoglu & Leopoldo Fergusson & James Robinson & Dario Romero & Juan F. Vargas, 2020. "The Perils of High-Powered Incentives: Evidence from Colombia's False Positives," American Economic Journal: Economic Policy, American Economic Association, vol. 12(3), pages 1-43, August.
    24. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    25. John Luke Gallup & Alejandro Gaviria & Eduardo Lora, 2003. "Is Geography Destiny? Lessons from Latin America," World Bank Publications - Books, The World Bank Group, number 14454, December.
    26. Melissa Dell, 2010. "The Persistent Effects of Peru's Mining Mita," Econometrica, Econometric Society, vol. 78(6), pages 1863-1903, November.
    27. Timothy Besley & Torsten Persson & Daniel M. Sturm, 2010. "Political Competition, Policy and Growth: Theory and Evidence from the US," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1329-1352.
    28. repec:idb:brikps:59398 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ricardo Salas & Pablo Sanabria-Pulido & Catalina Rodríguez & Pilar Torres, 2022. "Mérito, representatividad, y asimetrías en nombramientos de altos funcionarios públicos en Colombia 1991-2021," Documentos de trabajo 20768, Escuela de Gobierno - Universidad de los Andes.
    2. Karina Acosta & Hengyu Gu, 2022. "Locked up? The development and internal migration nexus in Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 19931, Banco de la República, Economía Regional.
    3. Julio A. Berdegué & Tatiana Hiller & Juan Mauricio Ramírez & Santiago Satizábal & Isidro Soloaga & Juan Soto & Miguel Uribe & Olga Vargas, 2019. "Delineating functional territories from outer space," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-24, December.
    4. Cardoso, Guilherme & Simonato, Thiago & Freire, Debora & Domingues, Edson, 2020. "Easing the Effects of Austerity with Reforms: A regional CGE experiment on Brazilian labor productivity," Conference papers 333186, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Fergusson, Leopoldo & Robinson, James A. & Torres, Santiago, 2023. "The interaction of economic and political inequality in Latin America," LSE Research Online Documents on Economics 122083, London School of Economics and Political Science, LSE Library.
    6. Juan Pablo Castilla, 2020. "To Kill a Black Swan: The Credibility Revolution at CEDE, 2000-2018," Documentos CEDE 18366, Universidad de los Andes, Facultad de Economía, CEDE.
    7. Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2017. "Political Alignment in the Time of Weak Parties: Electoral Advantages and Subnational Transfers in Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 15746, Banco de la República, Economía Regional.
    8. Leopoldo Fergusson & Tatiana Hiller & Ana Maria Ibañez, 2020. "Growth and inclusion trajectories of Colombian functional territories," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 1(1), pages 79-125.
    9. Leopoldo Fergusson, 2019. "Who wants violence? The political economy of conflict and state building in Colombia," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 38(78), pages 671-700, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gershman, Boris, 2020. "Witchcraft beliefs as a cultural legacy of the Atlantic slave trade: Evidence from two continents," European Economic Review, Elsevier, vol. 122(C).
    2. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 263-315, Elsevier.
    3. Aguirre, Alvaro, 2019. "Rebellions, Technical Change, and the Early Development of Political Institutions in Latin America," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 65-89.
    4. Daron Acemoglu & Giuseppe De Feo & Giacomo Davide De Luca, 2020. "Weak States: Causes and Consequences of the Sicilian Mafia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(2), pages 537-581.
    5. Nunn, Nathan, 2014. "Historical Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 7, pages 347-402, Elsevier.
    6. Graziella Bertocchi, 2016. "The legacies of slavery in and out of Africa," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-19, December.
    7. Maseland, Robbert, 2021. "Contingent determinants," Journal of Development Economics, Elsevier, vol. 151(C).
    8. Liu, Xianda & Hou, Wenxuan & Main, Brian G.M., 2022. "Anti-market sentiment and corporate social responsibility: Evidence from anti-Jewish pogroms," Journal of Corporate Finance, Elsevier, vol. 76(C).
    9. Andrei Markevich & Ekaterina Zhuravskaya, 2018. "The Economic Effects of the Abolition of Serfdom: Evidence from the Russian Empire," American Economic Review, American Economic Association, vol. 108(4-5), pages 1074-1117, April.
    10. Leopoldo Fergusson & Pablo Querubin & Nelson A. Ruiz & Juan F. Vargas, 2021. "The Real Winner's Curse," American Journal of Political Science, John Wiley & Sons, vol. 65(1), pages 52-68, January.
    11. Casey, Gregory & Klemp, Marc, 2016. "Instrumental Variables in the Long Run," MPRA Paper 68696, University Library of Munich, Germany.
    12. Aguirre, Alvaro, 2016. "The risk of civil conflicts as a determinant of political institutions," European Journal of Political Economy, Elsevier, vol. 42(C), pages 36-59.
    13. Fuchs-Schündeln, N. & Hassan, T.A., 2016. "Natural Experiments in Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 923-1012, Elsevier.
    14. Eicher, Theo S. & García-Peñalosa, Cecilia & Kuenzel, David J., 2018. "Constitutional rules as determinants of social infrastructure," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 182-209.
    15. James J. Feigenbaum & Soumyajit Mazumder & Cory B. Smith, 2020. "When Coercive Economies Fail: The Political Economy of the US South After the Boll Weevil," NBER Working Papers 27161, National Bureau of Economic Research, Inc.
    16. Rok Spruk & Mitja Kovac, 2020. "Persistent Effects of Colonial Institutions on Long‐Run Development: Local Evidence from Regression Discontinuity Design in Argentina," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 17(4), pages 820-861, December.
    17. Canning, David & Mabeu, Marie Christelle & Pongou, Roland, 2020. "Colonial origins and fertility: can the market overcome history?," MPRA Paper 112496, University Library of Munich, Germany.
    18. Fenske, James, 2015. "African polygamy: Past and present," Journal of Development Economics, Elsevier, vol. 117(C), pages 58-73.
    19. Oyèkọ́lá, Ọláyínká, 2021. "Where do people live longer?," Research in Economics, Elsevier, vol. 75(1), pages 21-44.
    20. Mitton, Todd, 2016. "The wealth of subnations: Geography, institutions, and within-country development," Journal of Development Economics, Elsevier, vol. 118(C), pages 88-111.

    More about this item

    Keywords

    Regional Inequality; Political Institutions; Economic Institutions.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000089:015445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Universidad De Los Andes-Cede (email available below). General contact details of provider: https://edirc.repec.org/data/ceandco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.