The Persistent Effect of Colonialism on Corruption

31 Pages Posted: 7 Mar 2015

See all articles by Luis Angeles

Luis Angeles

University of Glasgow

Kyriakos C. Neanidis

University of Manchester - School of Social Sciences

Date Written: April 2015

Abstract

This paper argues that corruption in developing countries has deep historical roots that go all the way back to their colonial experience. We substantiate our thesis with empirical evidence where the degree of European settlement during colonial times is a powerful explanatory factor of present‐day corruption. Interestingly, our mechanism is different from the prevailing view in the literature on institutions and growth, where European settlement has only positive effects. We argue that European settlement leads to higher levels of corruption for all countries where Europeans remained a minority in the population, i.e. for all developing countries.

Suggested Citation

Angeles, Luis and Neanidis, Kyriakos C., The Persistent Effect of Colonialism on Corruption (April 2015). Economica, Vol. 82, Issue 326, pp. 319-349, 2015. Available at SSRN: https://ssrn.com/abstract=2574482 or http://dx.doi.org/10.1111/ecca.12123

Luis Angeles (Contact Author)

University of Glasgow ( email )

Adam Smith Building
Glasgow, Scotland G12 8RT
United Kingdom

HOME PAGE: http://www.gla.ac.uk/departments/economics/staff/angeles_luis.html

Kyriakos C. Neanidis

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom
+44-161-275-4832 (Phone)
+44-161-275-4812 (Fax)

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