For more, see James Feyrer & Bruce Sacerdote, 2009. “Colonialism and Modern Income: Islands as Natural Experiments,” The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 245-262, May.
They argue that the nature of discovery and colonization of islands provides random variation in the length and type of colonial experience. They instrument for length of colonization using variation in prevailing wind patterns and direction.
They 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.
They 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.
Utopia, you are standing in it! 
Recent Comments