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Direct versus Indirect Colonial Rule in India: Long-term Consequences

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  • Lakshmi Iyer

    () (Harvard Business School, Business, Government and the International Economy Unit)

Abstract

This paper compares economic outcomes across areas in India which were under direct British colonial rule with areas which were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas which experienced direct rule have significantly lower levels of access to schools, health centers and roads in the post-colonial period. I find evidence that the quality of governance in the colonial period has a significant persistent effect on post-colonial outcomes.

Suggested Citation

  • Lakshmi Iyer, 2005. "Direct versus Indirect Colonial Rule in India: Long-term Consequences," Harvard Business School Working Papers 05-041, Harvard Business School, revised Nov 2008.
  • Handle: RePEc:hbs:wpaper:05-041
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    Keywords

    colonial rule; development; public goods;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East

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