ECON 255 Lecture Notes - Lecture 6: Jared Diamond, British Coal, The Columbian Exchange
Document Summary
Robinson-acemoglu and johnson: european colonies in africa vs. new world. Proving that a relationship is not caused by a third fact. Wasn"t caused by colonial plundering there"s time gap and reversal of factor occurs during industrial revolution. Geographical factor alone doesn"t affect income but the role of institution does. Geography versus institutions: institutional development plays a big role in the reversal of factor. [impact of slave trade on africa] slave trade in africa is an example of an extractive institution slave trade occurs in a longer period of time (500 years) and colonization shorter (75 years) Empirical evidence: measuring the number of slaves in each country in africa in each century. Conclusion: slave trade is a factor that prevents the formation of inclusive institutions when there"s no inclusive institution, the economic structure will be problematic and subsequently halt the economic progress. Tie between villages to weaken halt the process of forming the society.
