Cows and Conquistadors: A Contribution on the Colonial Origins of Comparative Development

David Fielding and Sebastián Torres Ledezma

Journal of Development Studies, 2008, vol. 44, issue 8, 1081-1099

Abstract: Identification of the impact of political and economic institutions on economic development requires the use of valid instruments for institutional quality. Recent empirical studies use colonial settler mortality rates as such an instrument. Our paper develops a more eclectic theory of colonial development, and compares the performance of the settler mortality model to alternatives incorporating instruments reflecting the factor endowments of colonial economies. Ceteris paribus, colonies with a natural comparative advantage in pastoral agriculture were more likely to experience European settlement that led to non-extractive institutions.

Date: 2008
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DOI: 10.1080/00220380802242347

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