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Colonization, Early Settlers and Development: The Case of Latin America

Author

Listed:
  • José García-Montalvo
  • Marta Reynal-Querol
Abstract
In this paper, we document the long-run impact of the geographical heterogeneity in skills among the first settlers to Latin America. To this end, we compile administrative data on the early settlers in the Americas between 1492 and 1540 including, among others, name, city of origin, destination, and occupation. From a methodological perspective, a focus on the initial period of colonization in Latin America offers several advantages. First, differences in the geographical distribution of occupations among the first settlers are likely to be accidental. Second, a set-up that analyzes an area with a single colonizer (Spain) allows to hold constant formal institutions and legal origin. Our results show a relevant effect of the skills of first colonizers on long-run levels of development of the areas located around the original settlements. We find evidence of persistence in the form of market orientation and entrepreneurial spirit.

Suggested Citation

  • José García-Montalvo & Marta Reynal-Querol, 2020. "Colonization, Early Settlers and Development: The Case of Latin America," Working Papers 1189, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1189
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    References listed on IDEAS

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    Cited by:

    1. Jean-Paul Faguet & Camilo Matajira & Fabio Sánchez-Torres, 2022. "Constructive extraction? Encomienda, the colonial state, and development in Colombia," Documentos CEDE 20105, Universidad de los Andes, Facultad de Economía, CEDE.

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    More about this item

    Keywords

    skills; early settlers; persistence; development;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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