The Persistence of (Subnational) Fortune

39 Pages Posted: 7 Jan 2017

See all articles by William F. Maloney

William F. Maloney

World Bank - Poverty and Economic Management Unit; IZA Institute of Labor Economics; World Bank - Development Research Group (DECRG)

Felipe Valencia Caicedo

Vancouver School of Economics

Date Written: December 2016

Abstract

Using newly collected subnational data, this article establishes the within‐country persistence of economic activity in the New World over the last half millennium, a period including the trauma of European colonisation, the drastic reduction of native populations and the imposition of potentially growth inhibiting institutions. High pre‐colonial density areas tend to be denser today due to locational fundamentals and agglomeration effects: colonialists established settlements near existing native populations for reasons of labour, trade, knowledge and defence. These areas, identified with pre‐colonial prosperity, also tend to have higher incomes today suggesting that at the subnational level, fortune persists.

Suggested Citation

Maloney, William F. and Valencia Caicedo, Felipe, The Persistence of (Subnational) Fortune (December 2016). The Economic Journal, Vol. 126, Issue 598, pp. 2363-2401, 2016. Available at SSRN: https://ssrn.com/abstract=2895181 or http://dx.doi.org/10.1111/ecoj.12276

William F. Maloney (Contact Author)

World Bank - Poverty and Economic Management Unit ( email )

1818 H Street NW
Washington, DC 20433
United States
202-473-6340 (Phone)
202-522-0054 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Felipe Valencia Caicedo

Vancouver School of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada

HOME PAGE: http://https://economics.ubc.ca/faculty-and-staff/felipe-valencia-caicedo/

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