Historical legacy and institutions across countries

Abstract

Several recent theories postulate why some countries were able to devise institutions conducive to long-run economic growth whereas others were not. Most of these consider various historical factors or geographic characteristics as important predeterminants. But which of these theories comes closest to the truth? This paper simultaneously considers several competing theories and empirically examines which ones provide the strongest explanations for contemporary institutions. I find that settler mortality rates are strongly associated with contemporary institutions even when controlling for other important historical factors, including ones from theories that do not emphasize geographic characteristics. However, Englebert's concept of state legitimacy does best at explaining institutional outcomes within sub-Saharan Africa.