Institutional Drift, Property Rights, and Economic Development: Evidence from Historical Treaties

Working Paper: NBER ID: w31713

Authors: Donn L. Feir; Rob Gillezeau; Maggie E.C. Jones

Abstract: For nearly three centuries, Indigenous peoples within the borders of present-day Canada engaged in treaty-making with the British Crown and other European powers. These treaties regularly formed the colonial legal basis for access to Indigenous lands. However, treaties were not negotiated everywhere, including in regions subsequently settled by Europeans. Consequentially, there is substantial regional variation in the legal status of occupied lands, jurisdiction over natural resources, and state commitments to Indigenous nations. We study how these legal institutions have shaped the path of economic development in Indigenous communities. Using restricted-access census data, we show that historical treaties substantially lower income in Indigenous communities today. We argue that this results from the constitutional and legal recognition of Aboriginal rights and title, which have dramatically increased bargaining power and, consequently, income growth in non-treaty Indigenous communities.

Keywords: No keywords provided

JEL Codes: J15; N31; N32; P14


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
constitutional and legal recognition of aboriginal rights (K10)bargaining power in nontreaty communities (D74)
bargaining power in nontreaty communities (D74)greater income growth (O49)
patriation of the Canadian Constitution in 1982 (N42)strengthening bargaining position of indigenous nations (F52)
strengthening bargaining position of indigenous nations (F52)impact on economic trajectories (F69)
historical treaties (N40)widening income gap (D31)
historical treaties (N40)income per capita (D31)

Back to index