Root Causes of African Underdevelopment

What is the root cause of Africa’s current state of under-development? Is it the long history of slave trade, or the legacy of extractive colonial institutions, or the fallout of malaria? A precise answer still eludes us. This paper investigates the relative contribution of these historical factors using an instrumental variable approach. The results show that malaria matters the most and all other factors are statistically insignificant. The mechanism through which malaria impacts economic performance is demonstrated by a strong negative relationship between malaria and national savings and a two period overlapping generation model. The model shows that high malaria incidence adversely affects growth by increasing both mortality and morbidity. Increased mortality from malaria induces households to increase current consumption and save less for the future. Increased morbidity on the other hand adversely affects labour productivity. The combined impact of these two effects is a slowdown of capital accumulation and economic growth.Malaria; Colonial Institutions; Slave Trade; Economic Development

Celebrating the generation of architectural ideas : tracing the lineage of Southeast Asian temples

From its early beginnings in the fifth century, the Brahmanic/Hindu tradition created a rich body of temples which spread across India and influenced temple building in Southeast Asia. The legacy of this ancient diasporic movement remains celebrated today in the admiration of Southeast Asian monuments such as Angkor Wat and Prambanan. However this architecture evolved over time through a process of long experimentation with philosophies, world-views, and methods. The architectural forms of such monuments have obvious Indian antecedents but the process of their development into distinctive indigenous forms remains difficult to ascertain. This is due both to the lack of textual accounts from the earliest Southeast Asian civilisations and because their architectural remains are fragmented or heavily eroded. This paper draws on a research project that pieces together fragments of evidence from diagrams and canonical descriptions to photogrammetry of temples in India and Southeast Asia. The intention of this is to establish the degree to which Southeast Asian temples are attributable to Brahmanic/Hindu lineage and influence. It will focus on the role of the early Southeast Asian temple site of Sambor Prei Kuk (lsanapura) in Cambodia. Comparing the relationships between cosmology, geometry and physical form in this earlier sites with both Indian and developed Southeast Asian models, it is intended that its generative role within Southeast Asian architectural historiography can be clarified and more fully celebrated

Distributional impact of commodity price shocks: Australia over a century

This paper explores the distributional impact of commodity price shocks over the both the short and very long run. Using a GARCH model, we find that Australia experienced more volatility than many commodity exporting poor countries between 1865 and 2007. A single equation error correction model suggests that commodity price shocks increase the income share of the top 1, 0.05, and 0.01 percent in the short run. The very top end of the income distribution benefits from commodity booms disproportionately more than the rest of society. The short run effect is mainly driven by wool and mining and not agricultural commodities. A sustained increase in the price of renewables (wool) reduces inequality whereas the same for non-renewable resources (minerals) increases inequality. We expect that the initial distribution of land and mineral resources explains the asymmetric result

Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions

We theoretically and empirically examine the relationship between natural resource revenues and financial development. In the theoretical part, we present a politico-economic model in which contract enforcement is low and decreasing in resource revenues when political institutions are poor, but high otherwise. As poor contract enforcement leads to low financial development, the model predicts that resource revenues hinder financial development in countries with poor political institutions, but not in countries with comparatively better political institutions. We test our theoretical predictions systematically using panel data covering the period 1970 to 2005 and 133 countries. Our estimates confirm our theoretical predictions. Our main results hold when we control country fixed effects, time varying common shocks, income and various additional covariates. They are also robust to alternative estimation techniques, various alternative measures of financial development and political institutions, as well as across different samples and data frequencies. We present further evidence using panel data covering the period 1870 to 1940 and 31 countries.Natural resources; political institutions; financial development

Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions

We theoretically and empirically examine the relationship between natural resource revenues and financial development. In the theoretical part, we present a politico-economic model in which contract enforcement is low and decreasing in resource revenues when political institutions are poor, but high otherwise. As poor contract enforcement leads to low financial development, the model predicts that resource revenues hinder financial development in countries with poor political institutions, but not in countries with comparatively better political institutions. We test our theoretical predictions systematically using panel data covering the period 1970 to 2005 and 133 countries. Our estimates confirm our theoretical predictions. Our main results hold when we control country fixed effects, time varying common shocks, income and various additional covariates. They are also robust to alternative estimation techniques, various alternative measures of financial development and political institutions, as well as across different samples and data frequencies. We present further evidence using panel data covering the period 1870 to 1940 and 31 countries. --Natural resources,political institutions,financial development

Natural Resources, Democracy and Corruption

We study how natural resources can feed corruption and how this effect depends on the quality of the democratic institutions. Our game-theoretic model predicts that natural resources lead to an increase in corruption if the quality of the democratic institutions is relatively poor, but not otherwise. We use panel data covering the period 1980 to 2004 and 99 countries to test this theoretical prediction. Our estimates confirm that the relationship between resource abundance and corruption depends on the quality of the democratic institutions. In particular, resource abundance is positively associated with corruption only in countries that have endured a nondemocratic regime for more than 60 percent of the years since 1956. Our main results hold when we control for the effects of income, time varying common shocks, regional fixed effects and various additional covariates. They are also robust to various alternative measures of natural resources, corruption and the quality of the democratic institutions. These findings imply that democratization can be a powerful tool to reduce corruption in resource-rich countries.Natural resources; democracy; political institutions; corruption

Extended Schmidt law holds for faint dwarf irregular galaxies

The extended Schmidt law (ESL) is a variant of the Schmidt law which relates the surface densities of gas and star formation, with the surface density of stellar mass added as an extra parameter. We empirically investigate for the first time whether low metallicity faint dwarf irregular galaxies (dIrrs) follow the ESL. Here we consider the `global' law where surface densities are averaged over the galactic discs. dIrrs are unique not only because they are at the lowest end of mass and star formation scales for galaxies, but also because they are metal-poor compared to the general population of galaxies. Our sample is drawn from the Faint Irregular Galaxy GMRT Survey (FIGGS) which is the largest survey of atomic hydrogen in such galaxies. The gas surface densities are determined using their atomic hydrogen content. The star formation rates are calculated using GALEX far ultraviolet fluxes after correcting for dust extinction, whereas the stellar surface densities are calculated using Spitzer 3.6 $\mu$m fluxes. All surface densities are calculated over stellar discs defined by the 3.6 $\mu$m images. We find dIrrs indeed follow the extended Schmidt law. The mean deviation of the FIGGS galaxies from the relation is 0.01 dex, with a scatter around the relation of less than half that seen in the original relation. In comparison, we also show that the FIGGS galaxies are much more deviant when compared to the `canonical' Kennicutt-Schmidt relation. Our results help strengthen the universality of the extended Schmidt law, especially for galaxies with low metallicities. We suggest that models of star formation in which feedback from previous generations of stars set the pressure in the ISM, are promising candidates for explaining the ESL. We also confirm that ESL is an independent relation and not a form of a relation between star formation efficiency and metallicity.Comment: Accepted for publication in Astronomy & Astrophysics. Figure 2 on Page 5 shows the main resul