e-journal
LEGAL ORIGIN OR COLONIAL HISTORY?
ABSTRACT
Economists have documented pervasive correlations between legal origins, modern
regulation, and economic outcomes around the world. Where legal origin is exogenous,
however, it is almost perfectly correlated with another set of potentially relevant
background variables: the colonial policies of the European powers that spread the
“origin” legal systems through the world. We attempt to disentangle these factors by
exploiting the imperfect overlap of colonizer and legal origin, and looking at possible
channels, such as the structure of the legal system, through which these factors might
influence contemporary economic outcomes. We find strong evidence in favor of
non-legal colonial explanations for economic growth. For other dependent variables,
the results are mixed.
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