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Under what conditions are historical institutions beneficial or detrimental to contemporary economic development? While some existing work finds political centralization positively associated with long-term development, other research identifies inefficiencies that are locked-in by centralized institutions. Linking together literatures on Africa and the Islamic world, we argue that historical institutions varied in consequential ways. In particular, the religious basis of political authority was important. Empowered religious elites shaped the nature of the colonial encounter, with long-lasting effects on development. Focusing on historical kingdoms in Africa, we find that areas governed by Islamic states experience higher infant mortality, fewer years of education, and lower density of nightlights in comparison to areas exposed to non-Islamic rule. These effects are not driven by Islam per se. Instead, the long-run effects of Islamic rule operate through three mechanisms associated with colonialism: low religious competition, the insulation of local elites, and weak penetration of colonial administration.
Melina Raquel Platas Izama, NYU Abu Dhabi
Jeremy M. Weinstein, Stanford University
Vincent Bauer, Stanford University