Tuesday, 2 October 2012

New working paper by Dr. Bandyophadyay and Dr. Elliott Green suggests pre-colonial persistence of poverty and wealth in contemporary Uganda

A new research paper by Dr. Sanghamitra Bandyopadhyay (QMUL CGR) and Dr. Elliott Green (LSE DESTIN) demonstrates striking results about the importance of pre-colonial history on the contemporary development of Uganda. The paper shows a correlation between pre-colonial centralization and private rather than public goods, thereby suggesting the persistence of poverty and wealth from the pre-colonial period to the present. The full paper can be found here. The abstract is shown below.

The importance of pre-colonial history on contemporary African development has become an important field of study within development economics in recent years. In particular Gennaioli and Rainer (2007) suggest that pre-colonial political centralization has had an impact on contemporary levels of development within Africa at the country level. We test the Gennaioli and Rainer (2007) hypothesis at the sub-national level with evidence from Uganda. Using a variety of datasets we obtain results which are striking in two ways. First, we confirm the Gennaioli and Rainer (2007) hypothesis that pre-colonial centralization is highly correlated with modern-day development outcomes such as GDP, asset ownership and poverty levels, and that these correlations hold at the district, sub-county and individual levels. We also use an instrumental variable approach to confirm this finding using the distance from ancient capital of Mubende as an instrument. However, our second finding is that public goods like immunization coverage and primary school enrolment are not correlated with pre-colonial centralization. These findings are thus consistent with a correlation between pre-colonial centralization and private rather than public goods, thereby suggesting the persistence of poverty and wealth from the pre-colonial period to the present.

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