Colonial institutions, trade shocks, and the diffusion of elementary education in Brazil, 1889-1930

Abstract

We study the initial expansion of public schooling across Brazilian states (1889-1930) and develop an alternative explanation of how colonial institutions may affect the provision of public goods in the long run. We find that states that exported commodities undergoing international booms, between 1889 and 1930, had significantly larger export tax revenues and could spend more on education, while other states lagged behind. Yet, such positive effect of commodity booms on education expenditures was muted in states that either had more slaves before abolition or cultivated cotton during colonial times. Copyright © The Economic History Association 2014.