Culture of Social Integration: How Extractive Colonialism Promotes Contemporary Individual Income

Tong Fu, Yuanyuan Li and Dawei Feng

Applied Economics Letters, 2023, vol. 30, issue 4, 405-409

Abstract: By exploring the history of northeastern China in 1898–1911, this paper documents that extractive colonialism spurs a culture of social integration that generates a positive effect on contemporary individual income, with robustness to potential endogeneity bias. Given that the existing literature has emphasized the long-run negative economic impacts of extractive colonialism, this paper helps explain the following institutional puzzle: Why does extractive colonialism spur development in the long run? We thereby deepen understanding of colonialism and institutions from a cultural perspective.

Date: 2023
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DOI: 10.1080/13504851.2021.1989366

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