Impact of colonial Institutions on economic growth and development in India: Evidence from night-lights data
By: Jha, Priyaranjan and Talathi, Karan
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Material type: 
BookPublisher: Economic Development and Cultural Change Description: 72(4), Jul, 2024: p.1653-1708.Subject(s): Colonial Institutions, Direct British Rule, Indirect British Rule, Land Tenure Systems, Economic Development, Night-Lights Data, District-Level Analysis, Historical Legacy, Revenue Collection, Regional Disparities, Infrastructure Correlates, Development Gap
In:
Economic Development and Cultural ChangeSummary:
This study investigates the long-term developmental impact of colonial administrative structures in India by analyzing district-level data and night-lights per capita as a proxy for income. It compares regions historically under direct British rule with those under indirect rule, revealing significantly lower night-light intensity and slower growth in directly ruled districts from 1993 to 2013. The disparity persists even after accounting for education, health, and infrastructure indicators. The findings attribute much of the gap to the adverse effects of landlord-based revenue systems imposed in directly ruled areas, highlighting the enduring influence of colonial institutions on regional development trajectories. Authors use district-level data from India to study the implications of two historical institutions, direct British rule and the heterogeneous land tenure institutions implemented by the British, on the disparity in present-day development in India. Using night-lights per capita as a proxy for district-level per capita income, we find that modern districts that were historically under direct British rule had significantly fewer night-lights per capita in 1993 relative to modern districts that were historically under indirect British rule. The large gap persists even after including correlates of development such as educational attainment, health, and physical and financial infrastructure. Looking at the growth pattern from 1993 to 2013, directly ruled districts had a lower annual growth rate compared with that of indirectly ruled districts. Much of the development gap between areas under indirect rule and areas under direct rule can be accounted for by the adverse effect of landlord-based revenue-collection systems in the directly ruled areas.- Reproduced
https://www.journals.uchicago.edu/doi/10.1086/725058
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Articles
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Indian Institute of Public Administration | 72(4), Jul, 2024: p.1653-1708 | Available | AR132913 |
This study investigates the long-term developmental impact of colonial administrative structures in India by analyzing district-level data and night-lights per capita as a proxy for income. It compares regions historically under direct British rule with those under indirect rule, revealing significantly lower night-light intensity and slower growth in directly ruled districts from 1993 to 2013. The disparity persists even after accounting for education, health, and infrastructure indicators. The findings attribute much of the gap to the adverse effects of landlord-based revenue systems imposed in directly ruled areas, highlighting the enduring influence of colonial institutions on regional development trajectories. Authors use district-level data from India to study the implications of two historical institutions, direct British rule and the heterogeneous land tenure institutions implemented by the British, on the disparity in present-day development in India. Using night-lights per capita as a proxy for district-level per capita income, we find that modern districts that were historically under direct British rule had significantly fewer night-lights per capita in 1993 relative to modern districts that were historically under indirect British rule. The large gap persists even after including correlates of development such as educational attainment, health, and physical and financial infrastructure. Looking at the growth pattern from 1993 to 2013, directly ruled districts had a lower annual growth rate compared with that of indirectly ruled districts. Much of the development gap between areas under indirect rule and areas under direct rule can be accounted for by the adverse effect of landlord-based revenue-collection systems in the directly ruled areas.- Reproduced
https://www.journals.uchicago.edu/doi/10.1086/725058
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