Ancestral Distance and the Cultural Foundations of State Capacity

Trung Vu

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This study investigates the role of long-term population relatedness in shaping global variation in state capacity. It argues that longer periods of ancestral separation are associated with greater divergence in intergenerationally transmitted civic norms governing voluntary compliance with state institutions. Ancestral distance may also hinder the international diffusion of effective state institutions, contributing to persistent cross-country differences in state capacity. The empirical analysis shows that countries with greater ancestral distance from the global frontier of effective state institutions exhibit lower state capacity. Dyadic regressions further indicate that ancestral distance is associated with greater divergence in state capacity. To examine a potential cultural foundation of this relationship, I exploit variation in cultural backgrounds among second-generation immigrants residing in the same country. I find that immigrant populations with greater ancestral distance exhibit larger differences in self-reported attitudes towards voluntary tax compliance. Taken together, the findings suggest that ancestral distance is an important historical predictor of cross-country disparities in state capacity, consistent with a role for divergence in civic norms and barriers to institutional diffusion.

Keywords: ancestral distance; long-term relatedness; state capacity; civic culture (search for similar items in EconPapers)
JEL-codes: H11 H77 O11 O19 P51 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2026-10
New Economics Papers: this item is included in nep-evo, nep-his and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2026-84

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