The Colonial Origins of Comparative Development: An Empirical Investigation Daron Acemoglu, Simon Johnson, and James A. Robinson NBER Working Paper No. 7771 June 2000 JEL No. O11, P16, P51 Abstract: This paper explores the impact of institutions on economic performance by examining differences in mortality rates faced by European colonialists. The authors argue that European colonization strategies varied, leading to different institutional structures. In areas with high mortality rates, Europeans could not settle and established worse (extractive) institutions. These institutions persisted into the present. Using data on mortality rates of soldiers, bishops, and sailors in the 17th, 18th, and 19th centuries, the authors estimate large effects of institutions on income per capita. Their findings suggest that differences in institutions explain approximately three-quarters of the income per capita differences across former colonies. Once controlling for institutions, countries in Africa or those farther from the equator do not have lower incomes. The authors also find that the effect of institutions on economic performance is robust to various controls, including climate, geography, religion, legal origin, natural resources, and soil quality. The results suggest that Africa is poorer not because of geographic or cultural factors, but because of worse institutions. The validity of the approach is supported by overidentification tests, which show no direct effect of settler mortality on economic outcomes. The paper is related to previous work on the influence of colonial experience on institutions, emphasizing the conditions in the colonies rather than the identity of the colonizer. The authors argue that the ability of Europeans to settle in a location determined the type of institutions established. The paper provides evidence that institutions are a major determinant of per capita income, with the results showing that differences in institutions explain a large portion of income differences across countries.The Colonial Origins of Comparative Development: An Empirical Investigation Daron Acemoglu, Simon Johnson, and James A. Robinson NBER Working Paper No. 7771 June 2000 JEL No. O11, P16, P51 Abstract: This paper explores the impact of institutions on economic performance by examining differences in mortality rates faced by European colonialists. The authors argue that European colonization strategies varied, leading to different institutional structures. In areas with high mortality rates, Europeans could not settle and established worse (extractive) institutions. These institutions persisted into the present. Using data on mortality rates of soldiers, bishops, and sailors in the 17th, 18th, and 19th centuries, the authors estimate large effects of institutions on income per capita. Their findings suggest that differences in institutions explain approximately three-quarters of the income per capita differences across former colonies. Once controlling for institutions, countries in Africa or those farther from the equator do not have lower incomes. The authors also find that the effect of institutions on economic performance is robust to various controls, including climate, geography, religion, legal origin, natural resources, and soil quality. The results suggest that Africa is poorer not because of geographic or cultural factors, but because of worse institutions. The validity of the approach is supported by overidentification tests, which show no direct effect of settler mortality on economic outcomes. The paper is related to previous work on the influence of colonial experience on institutions, emphasizing the conditions in the colonies rather than the identity of the colonizer. The authors argue that the ability of Europeans to settle in a location determined the type of institutions established. The paper provides evidence that institutions are a major determinant of per capita income, with the results showing that differences in institutions explain a large portion of income differences across countries.