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Cited by 207Culture, Economy, and Development StudiesHistorical Economic and Social StudiesEconomic Growth and Productivity

Colonialism and Modern Income: Islands as Natural Experiments

Feyrer, James, Sacerdote, Bruce·2009·Review of Economics and Statistics
DOI 10.1162/rest.91.2.245
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Abstract

Using a new database of islands throughout the Atlantic, Pacific, and Indian Oceans we find a robust positive relationship between the number of years spent as a European colony and current GDP per capita. We argue that the nature of discovery and colonization of islands provides random variation in the length and type of colonial experience. We instrument for length of colonization using variation in prevailing wind patterns. We argue that wind speed and direction had a significant effect on historical colonial rule but do not have a direct effect on GDP today. The data also suggest that years as a colony after 1700 are more beneficial than earlier years. We also find a discernable pecking order among the colonial powers, with years under U.S., British, French, and Dutch rule having more beneficial effects than Spanish or Portuguese rule. Our finding of a strong connection between modern income and years of colonization is conditional on being colonized at all since each of the islands in our data set spent some time under colonial rule.

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Crossref · 10.1162/rest.91.2.245

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Authors
Feyrer, J., & Sacerdote, B.
Affiliations
Dartmouth College (US)
ORCID
Venue
Review of Economics and Statistics
Publisher
MIT Press - Journals
Published
2009-05
Volume
91
Issue
2
Pages
245-262
ISSN
  • 0034-6535 (ISSN-L)
  • 1530-9142
DOI
10.1162/rest.91.2.245
OpenAlex
W2045581984
Cited by
207
References
52
Citations by year
2026: 3 · 2025: 10 · 2024: 6 · 2023: 24 · 2022: 9 · 2021: 9 · 2020: 13 · 2019: 14 · 2018: 17 · 2017: 16 · 2016: 15 · 2015: 10 · 2014: 8 · 2013: 11 · 2012: 11
FWCI
31.56
Type
journal article
Language
en
Open access
closed
Locations
  • The Review of Economics and Statistics (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Demography › Culture, Economy, and Development Studies
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Historical Economic and Social Studies
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Keywords
colonialism, economic development, GDP per capita, natural experiment, prevailing winds, wind speed and direction, colonial power

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