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State capacity and the economic history of colonial India

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  • Roy, Tirthankar

Abstract

The paper re-examines the role of the state in economic change in colonial India (1757–1947), by paying attention to fiscal capacity. This capacity was larger than that of the precolonial states, and based on different foundations, such as centralisation of finance and securitisation of public debt. Nevertheless, the effort to raise finance hit a barrier, which had owed to the separation of debt from revenue operations. Did the barrier matter? By keeping markets open, the colonial state served private enterprise, but its failure to sustain growth in fiscal capacity compromised public investment in infrastructure and social development.

Suggested Citation

  • Roy, Tirthankar, 2019. "State capacity and the economic history of colonial India," LSE Research Online Documents on Economics 100723, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:100723
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    File URL: http://eprints.lse.ac.uk/100723/
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    References listed on IDEAS

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    1. 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.

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    More about this item

    Keywords

    British empire; colonialism; economic development; state capacity;
    All these keywords.

    JEL classification:

    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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