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Institutional Drift, Property Rights, and Economic Development: Evidence from Historical Treaties

Author

Listed:
  • Donn L. Feir
  • Rob Gillezeau
  • Maggie E.C. Jones

Abstract

For nearly three centuries, Indigenous peoples within the borders of present-day Canada engaged in treaty-making with the British Crown and other European powers. These treaties regularly formed the colonial legal basis for access to Indigenous lands. However, treaties were not negotiated everywhere, including in regions subsequently settled by Europeans. Consequentially, there is substantial regional variation in the legal status of occupied lands, jurisdiction over natural resources, and state commitments to Indigenous nations. We study how these legal institutions have shaped the path of economic development in Indigenous communities. Using restricted-access census data, we show that historical treaties substantially lower income in Indigenous communities today. We argue that this results from the constitutional and legal recognition of Aboriginal rights and title, which have dramatically increased bargaining power and, consequently, income growth in non-treaty Indigenous communities.

Suggested Citation

  • Donn L. Feir & Rob Gillezeau & Maggie E.C. Jones, 2023. "Institutional Drift, Property Rights, and Economic Development: Evidence from Historical Treaties," NBER Working Papers 31713, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31713
    Note: DAE LE POL
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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