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Failure to Launch? The Role of Land Inequality in Transition Delays

  • Andros Kourtellos


    (Department of Economics, University of Cyprus; The Rimini Centre for Economic Analysis (RCEA))

  • Ioanna Stylianou


    (Department of Economics, University of Cyprus)

  • Chih Ming Tan


    (Department of Economics, Clark University; The Rimini Centre for Economic Analysis (RCEA))

Recent work in the growth literature has provided various explanations for transition delays and the great divergence. This paper provides empirical support for one theory of transition delays: initial land inequality. Our analysis is designed to elucidate the channels via which land inequality can affect long-run economic performance. Using a new historical data set for land inequality (Frankema (2009)) we employ duration analysis to investigate whether higher levels of land inequality lead to longer delays in the extension of primary schooling. We then investigate whether such delays affect long-run economic performance via their effect on contemporaneous schooling. Our findings suggest that land inequality is a key determinant of delays in schooling, and that such delays have a significant negative impact on long-run output.

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Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 22_11.

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Date of creation: Apr 2011
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Handle: RePEc:rim:rimwps:22_11
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