Direct versus Indirect Colonial Rule in India: Long-Term Consequences
Harvard Business School Working Paper No. 05-041
59 Pages Posted: 6 Nov 2008
Date Written: 2007
Abstract
This paper compares economic outcomes across areas in India which were under direct British colonial rule with areas which were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas which experienced direct rule have significantly lower levels of access to schools, health centers and roads in the post-colonial period. I find evidence that the quality of governance in the colonial period has a significant persistent effect on post-colonial outcomes.
Keywords: colonial rule, development, public goods
JEL Classification: O11, P16, N45
Suggested Citation: Suggested Citation
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