Showing papers by "William Easterly published in 2016"
TL;DR: This article found that any adverse effects of extractive institutions associated with small European settlements were, even at low levels of colonial European settlement, more than offset by other things that Europeans brought, such as human capital and technology.
Abstract: Although a large literature argues that European settlement outside of Europe during colonization had an enduring effect on economic development, researchers have been unable to assess these predictions directly because of an absence of data on colonial European settlement. We construct a new database on the European share of the population during colonization and examine its association with economic development today. We find a strong, positive relation between current income per capita and colonial European settlement that is robust to controlling for the current proportion of the population of European descent, as well as many other country characteristics. The results suggest that any adverse effects of extractive institutions associated with small European settlements were, even at low levels of colonial European settlement, more than offset by other things that Europeans brought, such as human capital and technology.
146 citations
Posted Content•
TL;DR: In this article, a large research program in economics has established a persuasive link between institu tions and economic development. But what does this imply for development policymaking? Can a political leader or aid agency seeking to pro mote development readily change institutions?
Abstract: A large research program in economics has established a persuasive link between institu tions and economic development. But what does this imply for development policymaking? Can a political leader or aid agency seeking to pro mote development readily change institutions? This article starts off wildly general, and then moves to specifics.
44 citations
Journal Article•
4 citations
Posted Content•
TL;DR: The authors studied the instability of hyper-specialization of exports and found that export ranks are not persistent, and new top products and destinations replace old ones, and that source-country factors are not the main explanation of this instability.
Abstract: We study the instability of hyper-specialization of exports. We have two main findings. (1) Specializations are surprisingly unstable: Export ranks are not persistent, and new top products and destinations replace old ones. Measurement error is unlikely to be the main or only determinant of this pattern. (2) Source-country factors are not the main explanation of this instability: Only 20% of the variation in export growth can be explained by variation in comparative advantage (source-by-product factors), while another 20% of the variation in export growth can be explained by variation in bilateral (source-by-destination) factors. The high share of product, destination, and product-by-destination factors, diminishes the emphasis on the nations where the exports originate. The high share of idiosyncratic variance (residual at the source-product-destination level of variation) of about 30%, also indicates the difficulty to predict export success using source country characteristics. These findings suggest that export performance depends, to a greater extent than previously appreciated, on forces that are outside the realm of national export promotion and industrial policies.
4 citations
Book•
01 Jan 2016
TL;DR: The authors argue that solutions proposed now to the problem of poverty are identical to solutions proposed decades ago - but the plans of rich governments simply do not successfully transform poor countries. And they also provide empirical evidence that backs up Easterly's argument.
Abstract: Foreign aid and overseas military intervention have been important and controversial political topics for over a decade. The government's controversial target to spend 0.7 per cent of national income on foreign aid has been widely welcomed by some, but strongly criticised by others. Furthermore, the controversy of the Iraq war rumbles on, even today. This is all happening amongst much instability in many parts of the world. In this short book, a number of authors challenge the assumption that we can bring about economic development and promote liberal democracies through direct foreign intervention - whether economic or military intervention. The lead author, William Easterly, drawing on his wide experience at the World Bank and as an academic, is a renowned sceptic of intervention. He points out that solutions proposed now to the problem of poverty are identical to solutions proposed decades ago - but the plans of rich governments simply do not successfully transform poor countries. Academics Abigail Hall-Blanco and Christian Bjornskov add further context and put forward empirical evidence that backs up Easterly's argument. Syvlie Aboa-Bradwell draws upon her own practical experience to give examples of how people in poor countries can be assisted to promote their own development. This book is essential reading for students, teachers and all interested in better understanding how to help - and how not to help - the world's most disadvantaged peoples.
2 citations