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Slavery, Inequality, and Economic Development in the Americas: An Examination of the Engerman-Sokoloff Hypothesis

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  • Nunn, Nathan

Abstract

Recent research argues that among former New World colonies a nation's past dependence on slave labor was important for its subsequent economic development (Engerman and Sokoloff, 1997, 2002, 2006; Sokoloff and Engerman, 2000). These studies argue that specialization in plantation agriculture based on slave labor caused economic inequality, which concentrated power in the hands of a small elite, adversely affecting the development of domestic institutions needed for sustained economic growth. I test for these relationships looking both across former New World economies and across states and counties within the U.S. I find evidence that slave use is negatively correlated with subsequent economic development. However, I do not find evidence that this negative relationship is driven by large scale plantation slavery, or that the relationship works through slavery’s effect on economic inequality.

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  • Nunn, Nathan, 2007. "Slavery, Inequality, and Economic Development in the Americas: An Examination of the Engerman-Sokoloff Hypothesis," MPRA Paper 4080, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:4080
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    References listed on IDEAS

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    1. Daron Acemoglu & María Angélica Bautista & Pablo Querubín & James A. Robinson, 2007. "Economic and Political Inequality in Development: The Case of Cundinamarca, Colombia," NBER Working Papers 13208, National Bureau of Economic Research, Inc.
    2. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151, December.
    3. 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.
    4. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
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    Cited by:

    1. Bertocchi, Graziella, 2011. "Growth, Colonization, and Institutional Development: In and Out of Africa," IZA Discussion Papers 5856, Institute of Labor Economics (IZA).
    2. Erdogdu, Erkan, 2013. "A cross-country analysis of electricity market reforms: Potential contribution of New Institutional Economics," Energy Economics, Elsevier, vol. 39(C), pages 239-251.
    3. Jan Luiten van Zanden, 2012. "In Good Company: About Agency and Economic Development in Global Perspective," Economic History of Developing Regions, Taylor & Francis Journals, vol. 27(S1), pages 16-27.
    4. William F. Maloney & Felipe Valencia Caicedo, 2012. "The Persistence of (Subnational) Fortune: Geography, Agglomeration, and Institutions in the New World," Documentos CEDE 10017, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.

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    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • N00 - Economic History - - General - - - General

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