Working Paper: NBER ID: w13431
Authors: Sukkoo Kim
Abstract: The development of the American economy was accompanied by significant spatial income inequalities between the northern and southern regions. While many factors contributed to northern industrialization and southern stagnation, an important factor was differences in their institutions. In the North, a democratic institution fostered growth whereas in the South, an oligarchic institution favored status quo. To gain some insights on the nature and causes of the divergence of these institutions, this paper examines the development of political and legal institutions in Massachusetts and Virginia, the two leading states in the North and the South.
Keywords: No keywords provided
JEL Codes: H11; H70; N41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| historical accidents (N63) | diverging political goals (D72) |
| initial governance structure (H10) | subsequent political evolution (P39) |
| climate and demographic factors (J11) | institutional divergence (D02) |
| demographic changes (J11) | political stability (P26) |
| demographic changes (J11) | institutional development (O17) |
| factor endowments (D29) | emergence of landed elite (N93) |
| economic structures (P19) | political institutions (D02) |