Current differences in development between North and Latin American countries led to different academic approaches explaining this phenomenon. One thesis is the institutionalist approach with two popular theories brought up by Daron Acemoglu and Engermann and Sokoloff differing in their definition on institutions. Further research confirms these theories in parts depending on their empirical methodology.
My empirical work focusses on Engermann and Sokoloff, finding soft evidence for their claim of colonial activities influencing growth paths until today. I do not find evidence for colonial activities and slavery influencing modern income inequality.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. The Institutionalist Approach – A Literature Overview
- 2.1. Engermann and Sokoloff – Economic and Political Inequality
- 2.2. Acemoglu - Property Rights
- 3. Empirical Work
- 4. Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the institutionalist approach to explaining differences in economic development between North and Latin American countries. It analyzes the two main theories of the approach: Engermann and Sokoloff's emphasis on economic and political inequality and Acemoglu's focus on secure property rights. The paper then investigates empirical evidence supporting these theories, particularly focusing on the findings of Bruhn and Gallego (2012) regarding the impact of colonial activities on development.
- The institutionalist approach linking colonial institutions to economic outcomes
- The impact of slavery and exploitation on inequality and growth
- The role of property rights in economic development
- Empirical evidence on the relationship between colonial activities, inequality, and economic development
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: Introduction - This chapter introduces the phenomenon of economic disparity between North and Latin America and outlines the paper's focus on the institutionalist approach. It briefly discusses alternative explanations, like the geography and cultural approaches.
- Chapter 2: The Institutionalist Approach - A Literature Overview - This chapter reviews the two primary versions of the institutionalist approach, contrasting the emphasis on economic and political inequality by Engermann and Sokoloff with Acemoglu's focus on secure property rights. It explores the arguments and evidence of each perspective.
- Chapter 3: Empirical Work - This chapter delves into the empirical findings of Bruhn and Gallego (2012) concerning the impact of colonial activities on development. It examines how their data on various types of colonial activities supports and challenges the conclusions of Engermann and Sokoloff.
Schlüsselwörter (Keywords)
The primary focus of this paper is on understanding the relationship between inequality, colonial activities, and economic development in the Americas. It analyzes key concepts like the institutionalist approach, slavery, economic and political inequality, property rights, and the empirical findings of researchers like Engermann, Sokoloff, Acemoglu, Bruhn, and Gallego.
- Quote paper
- Thomas Craemer (Author), 2017, Inequality in the New World. Discussing the Institutionalist Approach, Munich, GRIN Verlag, https://www.grin.com/document/364580
