Direct versus Indirect Colonial Rule in India: Long-Term Consequences

Harvard Business School Working Paper No. 05-041

59 Pages Posted: 6 Nov 2008

See all articles by Lakshmi Iyer

Lakshmi Iyer

Harvard Business School - Business, Government and the International Economy Unit

Date Written: 2007

Abstract

This paper compares economic outcomes across areas in India which were under direct British colonial rule with areas which were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas which experienced direct rule have significantly lower levels of access to schools, health centers and roads in the post-colonial period. I find evidence that the quality of governance in the colonial period has a significant persistent effect on post-colonial outcomes.

Keywords: colonial rule, development, public goods

JEL Classification: O11, P16, N45

Suggested Citation

Iyer, Lakshmi, Direct versus Indirect Colonial Rule in India: Long-Term Consequences (2007). Harvard Business School Working Paper No. 05-041, Available at SSRN: https://ssrn.com/abstract=1295481 or http://dx.doi.org/10.2139/ssrn.1295481

Lakshmi Iyer (Contact Author)

Harvard Business School - Business, Government and the International Economy Unit ( email )

Cambridge, MA
United States

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