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Direct versus Indirect Colonial Rule in India: Long-Term Consequences

Lakshmi Iyer

Harvard Business School

The Review of Economics and Statistics 2010 open access

This paper compares economic outcomes across areas in India that were under direct British colonial rule with areas that were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas that experienced direct rule have significantly lower levels of access to schools, health centers, and roads in the postcolonial period. I find evidence that the quality of governance in the colonial period has a significant and persistent effect on postcolonial outcomes.

DOI
10.1162/rest_a_00023
Volume
92 (4)
Pages
693-713
Language
en
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