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The Colonial Legacy in India: How Persistent Are the Effects of Historical Institutions?

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  • Iyer, Lakshmi

    (University of Notre Dame)

  • Weir, Coleson

    (University of Notre Dame)

Abstract

Using updated data, we analyze the long-run effects of two British colonial institutions established in India. Iyer (2010) showed that areas under direct colonial rule had fewer schools, health centers, and roads than areas under indirect colonial rule. Two decades later, we find that these differences have been eliminated. Banerjee and Iyer (2005) found lower agricultural investments and productivity in areas with landlord-based colonial land tenure systems. Our updated data finds that only some of these differences have been eliminated. We conclude that the impact of colonial institutions can eventually fade away under the influence of targeted policies.

Suggested Citation

  • Iyer, Lakshmi & Weir, Coleson, 2024. "The Colonial Legacy in India: How Persistent Are the Effects of Historical Institutions?," IZA Discussion Papers 17051, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17051
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    JEL classification:

    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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