Property Rights and Economic Growth: Evidence from a Natural Experiment
NHH - Norwegian School of Economics; Centre for Economic Policy Research (CEPR)
November 8, 2011
NHH Dept. of Economics Discussion Paper No. 20/2011
In 1795 the British took control of the Cape colony (South Africa) from the Dutch; and in 1843 they exogenously changed the legal basis of landholding, giving more secure property rights to landholders. Since endowments and other factors were held constant, these changes offer clean tests of the effects on economic growth of colonial identity and secure property rights. The effects of both changes were immediate, positive and large. Other legal and institutional changes, such as the move to a common law system in 1827, had no such effects on economic growth.
Number of Pages in PDF File: 56
Keywords: Economic growth, legal origins, property rights
JEL Classification: N47, O43working papers series
Date posted: December 8, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.437 seconds