This article presents new estimations of per capita GDP in colonial times for the two pillars of the Spanish empire: Mexico and Peru. We find dynamic economies as evidenced by increasing real wages, urbanization, and silver mining. Their growth trajectories are such that both regions reduced the gap with respect to Spain; Mexico even achieved parity at times. While experiencing swings in growth, the notable turning point is in 1780s as bottlenecks in production and later, the independence wars reduced economic activity. Our results question the notion that colonial institutions impoverished Latin America.

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The New Economic History of Latin America: Evolution and Recent Contributions

Growth under Extractive Institutions? Latin American Per Capita GDP in Colonial Times

ABSTRACT This paper studies the evolution of numeracy in Chile for cohorts born from the 1780s to the 1970s, providing a new series of this important indicator of human capital, essential to promote economic growth. This is the longest series currently available of any human capital indicator for Chile. It shows that numeracy was very low until the early twentieth century but that, contrary to traditional interpretations, it increased gradually from the 1780s (well before the promulgation of the primary instruction law of 1860), until full basic numeracy skills were achieved by the mid-twentieth century. This transition was completed some 3–4 decades after parallel developments occurred in the leading countries of the region and some 120 years behind the most developed areas of Europe. This development was characterized by high gender numeracy inequality until the first decades of the twentieth century, as well as by a pronounced regional inequality. However, there was a quick process of convergence across provinces, completed at the same time as gender inequality was reduced. Our numeracy data is also consistent with alternative human capital indicators such as literacy and schooling, and we provide a set of explanations about why they all improved, and their timing.

The New Economic History of Latin America: Evolution and Recent Contributions

Citations

Growth under Extractive Institutions? Latin American Per Capita GDP in Colonial Times

Human capital in Chile: The development of numeracy during the last 250 years

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