Direct versus indirect colonial rule in India

Direct versus indirect colonial rule in India

by Lakshmi Iyer

Part of Working paper / Harvard Business School -- 05-041

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This paper compares economic outcomes across areas in India which were under direct British colonial rule with areas which were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas which experienced direct rule have significantly lower levels of access to schools, health centers and roads in the post-colonial period. I find evidence that the quality of governance in the colonial period has a significant persistent effect on post-colonial outcomes.

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