It's Time for Westernization: The Advantages of the Early Start for Long-Term Economic Development at the Local Level

48 Pages Posted: 22 Feb 2018

Date Written: February 11, 2018

Abstract

This article examines the “early start” hypothesis at the local level in the context of the Australian colonization. It is found that the longer a place experiences economic activity under European management, the higher economic development it achieves in the long-run. A theoretical framework is proposed under which a set of dynamic forces work in aggregate and enhance urban economic development. The results hold after accounting for spatial autocorrelation among localities and excluding the most and least urbanized places. Moreover, the results are robust after excluding the most arid localities and allowing for the Aboriginals’ economic influence. Overall, the nature of Australian colonization reflects a relatively random variation in the duration of the western presence at the local level, causing uneven urban development.

Keywords: Economic Development, Early Start

JEL Classification: C21, O10, R11

Suggested Citation

Kampanelis, Sotiris, It's Time for Westernization: The Advantages of the Early Start for Long-Term Economic Development at the Local Level (February 11, 2018). Available at SSRN: https://ssrn.com/abstract=3121978 or http://dx.doi.org/10.2139/ssrn.3121978

Sotiris Kampanelis (Contact Author)

University of St. Andrews ( email )

The Gateway
North Haugh
St Andrews, Fife KY16 9RJ
United Kingdom

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