Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

download Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

of 50

Transcript of Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    1/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    2/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    3/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    4/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    5/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    6/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    7/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    8/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    9/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    10/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    11/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    12/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    13/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    14/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    15/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    16/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    17/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    18/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    19/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    20/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    21/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    22/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    23/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    24/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    25/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    26/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    27/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    28/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    29/50

    TABLE 1 : STATE-WISE DISTRIBUTION OF LANDLORD AND NON-LANDLORD DISTRICTS

    Mean non- Total districts

    State landlord Landlord Individualproportion based based Landlord Non-landlord

    Andhra Pradesh 0.66 2 8 0 0 10

    Bihar 0.00 12 0 0 0 12

    Gujarat 1.00 0 7 0 0 7

    Haryana 0.85 0 0 0 5 5

    Karnataka 1.00 0 15 0 0 15

    Madhya Pradesh 0.10 14 1 0 0 15

    Maharashtra 0.78 4 14 0 0 18

    Orissa 0.32 6 2 0 0 8

    Punjab 0.87 0 0 0 6 6

    Rajasthan 0.00 1 0 0 0 1

    Tamil Nadu 0.75 2 9 0 0 11

    Uttar Pradesh 0.42 0 0 12 35 47

    West Bengal 0.00 11 0 0 0 11

    Total 0.51 52 56 12 46 166

    Notes: This table lists only districts which used to be part of British India. Areas where the British

    did not set up the land revenue system are excluded.

    Districts of British India which are currently in Pakistan, Bangladesh or Burma are excluded.

    The table also excludes the states of Assam and Kerala, for which agricultural data is not available

    in the World Bank dataset.

    The table lists 1960 districts, some of which were split into two or more districts over time. We use

    un-split districts in all our analysis.

    Classification of revenue systems

    Village bodies

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    30/50

    TABLE 2 : DIFFERENCES IN GEOGRAPHY AND DEMOGRAPHICS

    Mean Standard Differencea

    Standard error

    deviation of difference

    Geography

    Latitude 22.19 5.60 -4.35*** (0.961)

    Altitude 366.41 148.14 93.64*** (25.98)

    Mean annual rainfall (mm) 1263.09 471.64 -373.99*** (80.83)

    Coastal dummy 0.1497 0.3579 0.084 (0.065)

    Top 2 soil types: Black soil 0.2096 0.4082 0.244*** (0.072)

    Alluvial soil 0.1677 0.3747 -0.135** (0.067)

    Red soil 0.5689 0.4967 0.075 (0.090)

    Top-soil depth 300 cm 0.5482 0.4991 -0.268*** (0.088)

    Area share of various crops:1956-1987

    area share of rice 0.366 0.298 -0.194*** (0.054)

    area share of wheat 0.149 0.157 -0.058** (0.026)

    area share of other cereals 0.205 0.172 0.128*** (0.031)

    area share of oilseeds 0.067 0.088 0.065*** (0.013)

    area share of cotton 0.041 0.096 0.066*** (0.018)

    area share of tobacco 0.003 0.015 0.005** (0.002)area share of sugarcane 0.031 0.053 0.005 (0.008)

    Cash crops to cereals ratio 0.149 0.257 0.152*** (0.048)

    Demographics: 1961, 1971, 1981, 1991

    log(Population) 14.26 0.634 -0.088 (0.109)

    Population density 36.44 85.92 -11.22** (4.02)

    Proportion of scheduled castes 0.1598 0.0733 -0.034** (0.014)

    Proportion of scheduled tribes 0.0980 0.1630 -0.010 (0.031)

    Proportion rural 0.8102 0.1237 -0.066*** (0.023)

    Proportion of working population in farming 0.7119 0.1352 -0.050* (0.027)

    Standard errors in parentheses, corrected for district-level clustering.

    * significant at 10%; ** significant at 5%; *** significant at 1%aDifference represents the average difference between non landlord and landlord districts

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    31/50

    ESINAGRICULTURALINVESTMENT

    SANDYIELDS

    tion=0.5051(s.d.=0.4274)

    M

    eanofdependent

    variable

    OLS

    OLS

    OLS

    OLS

    Fulls

    ample

    ExcludingBenga

    l

    Fullsample

    Excludingvillage-

    andBihar

    baseddistricts

    (1)

    (2)

    (3)

    (4)

    MENTS

    reairrigated

    0.276

    0.065*

    0.066*

    0.077***

    0.005

    (0.0

    34)

    (0.035)

    (0.027)

    (0.032)

    24.64

    10.70

    8***

    10.992***

    9.988***

    10.695***

    (3.3

    45)

    (3.406)

    (2.301)

    (3.040)

    HYV

    0.298

    0.079*

    0.094**

    0.016

    0.074*

    (0.0

    44)

    (0.043)

    (0.032)

    (0.038)

    erHYV

    0.518

    0.09

    2**

    0.119***

    0.031

    0.107**

    (0.0

    46)

    (0.045)

    (0.036)

    (0.052)

    eaunderHYV

    0.196

    0.057*

    0.084***

    -0.035

    0.109***

    (0.0

    31)

    (0.024)

    (0.025)

    (0.041)

    TIVITY

    0.15

    7**

    0.152**

    0.173***

    0.089

    (0.0

    71)

    (0.074)

    (0.053)

    (0.085)

    0.17

    1**

    0.195**

    0.099

    0.173**

    (0.0

    81)

    (0.081)

    (0.062)

    (0.079)

    0.229***

    0.228***

    0.188***

    0.143

    (0.0

    67)

    (0.070)

    (0.054)

    (0.098)

    166

    143

    166

    109

    YES

    YES

    YES

    YES

    YES

    YES

    YES

    YES

    ontrol

    YES

    YES

    YES

    YES

    ses,correctedfor

    district-levelclustering.*significantat10%;**significantat5%;***significan

    tat1%

    efficientfromaregressionofthedependentv

    ariableonthemeasureofnon-landlordcontrol.

    taforareaunderh

    igh-yieldingvarieties(HYV)isafter1965.

    itude,latitude,me

    anannualrainfall,anddum

    miesforsoiltypeandcoastalregions.

    sassignedasfollo

    ws:thedummyequalsone

    forallindividual-baseddistrictsandallvillage-based

    districtsexcept

    d-baseddistrictsandthevillage-baseddistrictsofOudh,thedummyiszero.

    Coeffic

    ientonnon-landlordproportion

    Coefficientonnon-landlorddummy

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    32/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    33/50

    TABLE 5: ARE YIELDS EXPLAINED BY INVESTMENTS?

    Log total yield Log rice yield Log wheat yieldOLS OLS OLS

    (1) (2) (3)

    Proportion non-landlord 0.035 0.070 0.109

    (0.053) (0.063) (0.063)

    Proportion of gross cropped area irrigated 0.693** 0.439** 0.435**

    (0.112) (0.096) (0.117)

    Fertilizer use (kg/ha) 0.007** 0.004** 0.001

    (0.001) (0.001) (0.001)

    % area under HYV 4.274** 0.580** 0.618**

    (1.122) (0.063) (0.070)

    Adjusted R-squared 0.60 0.52 0.56

    No. of districts 166 166 166

    Year fixed effects YES YES YES

    Geographic controls YES YES YESDate of British land revenue control YES YES YES

    Standard errors in parentheses, corrected for district-level clustering.

    * significant at 10%; ** significant at 5%; *** significant at 1%

    Data are from 1956-87. Data for area under high-yielding varieties (HYV) is after 1965.

    Geographic controls are altitude, latitude, mean annual rainfall, and dummies for soil type and coastal regions.

    Dependent variables

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    34/50

    TABLE 6: WHEN DO THE DIFFERENCES APPEAR?

    PANEL A : FULL SAMPLE

    Dependent variable Difference1956-65 After 1965

    (1) (2) (3)

    AGRICULTURAL INVESTMENTS

    Proportion of gross cropped area irrigated 0.046 0.079** 0.033**

    (0.033) (0.036) (0.016)

    Fertilizer use (kg/ha) 1.026** 15.581*** 14.55***

    (0.425) (4.763) (4.44)

    AGRICULTURAL PRODUCTIVITY

    log(yield of 15 major crops) 0.066 0.201*** 0.135***

    (0.065) (0.076) (0.033)

    log(rice yield) 0.108 0.196** 0.088**

    (0.069) (0.089) (0.044)

    log(wheat yield) 0.146** 0.268*** 0.122*

    (0.058) (0.079) (0.063)

    No. of districts 166 166 166Year fixed effects YES YES YES

    Geographic controls YES YES YES

    Date of British land revenue control YES YES YES

    Standard errors in parentheses, corrected for district-level clustering.

    * significant at 10%; ** significant at 5%; *** significant at 1%

    Data are from 1956-87. Geographic controls are altitude, latitude, mean annual rainfall, and dummies

    for soil type and coastal regions. Estimates in column (3) are computed from a regression of the dependent

    variable on the interaction of the non-landlord proportion and a dummy for year>1965, after controllingfor the main effects of these variables, as well as geographic controls.

    PANEL B: RICE YIELDS FOR TAMIL NADU DISTRICTS

    Sample : 10 districts of Tamil Nadu

    Data are for 1870, 1901, 1911, 1917, 1919, and five-yearly intervals from 1922 to 1982

    Dependent variable

    Before 1965 After 1965 Difference

    Log rice yield -0.099 0.415 0.514**

    (0 172) (0 366) (0 217)

    Coefficient on non-landlord proportion

    Coefficient on non-landlord proportion

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    35/50

    TABLE 7: IMPACT OF STATE POLICY

    Dependent variables Mean of

    dependent OLS OLS OLSvariable Base specification Control for state State FE

    dev exp per capita

    (1) (2) (3)

    PANEL A: AGRICULTURAL INVESTMENTS

    Proportion of gross cropped area irrigated 0.276 0.065* 0.074** 0.028

    (0.034) (0.035) (0.036)

    Fertilizer use (kg/ha) 24.64 10.708*** 10.805*** 4.297

    (3.345) (3.717) (3.308)

    Proportion of rice area under HYV 0.298 0.079* 0.007 0.000

    (0.044) (0.040) (0.042)

    Proportion of wheat area under HYV 0.518 0.092** 0.061 0.028

    (0.046) (0.047) (0.039)

    Proportion of other cereals area under HYV 0.196 0.057* 0.025 0.043*

    (0.031) (0.030) (0.026)

    PANEL B: AGRICULTURAL PRODUCTIVITY

    log(yield of 15 major crops) 0.157** 0.174** 0.059

    (0.071) (0.076) (0.072)log(rice yield) 0.171** 0.083 0.016

    (0.081) (0.082) (0.078)

    log(wheat yield) 0.229*** 0.243*** 0.150***

    (0.067) (0.072) (0.045)

    PANEL C: EDUCATION AND HEALTH INVESTMENTS 1981

    Proportion of villages having:

    Primary school 0.745 0.154*** 0.062* 0.102***

    (0.036) (0.037) (0.039)Middle school 0.204 0.125*** 0.093*** 0.064***

    (0.023) (0.021) (0.018)

    High school 0.082 0.052*** 0.019 0.030**

    (0.018) (0.014) (0.013)

    Primary health center 0.023 0.011*** 0.002 0.012***

    (0.004) (0.004) (0.004)

    Primary health subcenter 0.031 0.033*** 0.011 0.006

    (0.011) (0.009) (0.006)

    PANEL D: EDUCATION AND HEALTH OUTCOMES

    Literacy rate (1961, 1971, 1981, 1991) 0.2945 0.0524** 0.0290* 0.0241

    (0.0190) (0.0171) (0.0176)

    Infant mortality rate (1991) 82.17 -32.71*** -25.43*** -15.81***

    (5.38) (5.28) (5.40)

    Coefficient on non-landlord proportion

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    36/50

    TRICTSOFBRITISHINDIA,WITHDATESANDMODEOFAC

    QUISITIONBYTHEBR

    ITISH

    Datean

    dmodeofacquisition

    Districtsincluded

    SetupbyBritishin1690

    Calcutta

    onland

    obtainedfromMughalemperor

    s

    Cameu

    nderBritishpoliticalcontrol

    24-Parganas(parts),Burdwan,Midn

    apore(parts),

    from1

    757to1761

    Chittagon

    g

    ehar

    Revenu

    ecollectionrightsgranted

    Bankura,

    Birbhum,Hooghly,Howra

    h,Malda,Murshidabad,

    byMughalemperorin1765

    Nadiya(m

    odernWestBengal);Bhagalpur,Champaran,

    Darbhang

    a,Gaya,Hazaribagh,Lohardagga,Munger,Patna,

    Purnea,SantalParganas,Saran,Shahabad,Singhbhum

    (modernBihar);Bakirganj,Bogra,D

    acca,Faridpur,Dinajpur,

    Jessore,Khulna,Maimansingh,Noa

    khalli,Pabna,Rajshahi,

    Rangpur,Tipra(modernBanglades

    h)

    Cameu

    ndercontrolin1826

    Jalpaiguri,Darjeeling.

    and1838respectively.

    Conque

    redin1803

    Balasore,

    Cuttack,Puri

    (restofO

    rissaundertributarychiefs)

    GrantedbyNawaboftheCarnatic

    Chingleput,Madras

    in1750-63

    ars

    GrantedbyMughalemperorin1765,

    Vizagapatam,Ganjam,Kistna,Goda

    vari

    grantconfirmedbyNizamofDeccan

    in1768.

    tained

    ObtainedfromMysoreafterthe

    Salem,Coimbatore,Malabar,Kanara,

    SecondMysoreWar1792

    somearea

    sofMadura

    ts

    ObtainedbyNizamofDeccanafter

    Anantapu

    r,Bellary,Cuddapah,Karn

    ul

    Mysore

    Warandthencededto

    British

    in1800

    icts

    CededtoBritishbyNawabof

    Nellore,N

    orthArcot,SouthArcot,M

    adura,

    Carnaticin1801

    Trichinop

    oly,Tinnevelly

    TakenoverbyBritishduetoincap

    acity

    Tanjore

    ofHind

    urulerin1799

    TakenoverbyBritishin1831due

    to

    Mysore

    misman

    agementofruler,givenbackto

    Wodey

    arsin1881

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    37/50

    Datean

    dmodeofacquisition

    Districtsincluded

    CededbytheNawabofOudhin1775

    Benares,Mirzapur,Jaunpur,Ghazipur,Ballia,

    ts

    CededbytheNawabofOudhin1801

    Azamgarh,Gorakhpur,Basti,Allaha

    bad,Fatehpur,Kanpur,

    Farukhabad,Etawa,Mainpuri,Etah,

    Shahjahanpur,Badayun,

    Bareli,Pilibhit,Moradabad,Bijnaur,TaraiParganas

    stricts

    ConqueredbyLordLakefromScindia

    Agra,Ma

    thura,Aligarh,Bulandshah

    r,Meerut,

    andoth

    ersin1803

    Muzaffarnagar,Saharanpur

    Conqueredinpartsfrom1803-17.

    Banda,Hamirpur

    Takenoverduetolapse,forfeiture

    etc.

    Jalaun,Jh

    ansi,Lalitpur

    inyearsafter1840.

    CededaftertheNepalwarin1815

    Dehradun

    .

    Annexe

    dfromNawabofOudhin1856.

    Kheri,Sitapur,Hardoi,Lucknow,Unao,Barabanki,Rai-Bareli,

    Partabgar

    h,Sultanpur,Faizabad,Gonda,Bahraich

    ObtainedfromNawabofSuratin1800

    Surat

    ConqueredfromBarodain1803a

    nd

    Ahmedab

    ad,Kaira,Broach

    Marathasin1818.

    ory

    ConqueredfromPeshwain1818

    Thana,Khandesh,Nasik,Ahmednag

    ar,Poona,Sholapur,

    Kolaba,R

    atnagiri,Belgaum(somep

    artsobtainedin1827),

    Bijapur,D

    harwar

    Takenoverbylapsein1848

    Satara

    Transfe

    rredfromMadrasin1862

    Kanara

    Conqueredin1843

    Karachi,Haidarabad,Shikarpur,UpperSindhFrontier,

    Thar&Parkar(modernPakistan)

    Obtainedin1861

    PanchMahals

    Obtainedaspartofdiwaniin1765

    ,

    Goalpara

    (modernAssam),Sylhet(m

    odernBangladesh)

    latertr

    ansferredtoAssam

    Conqueredin1824

    Darrang,Kamrup,Lakhimpur,Naug

    ong,Sibsagar

    Brough

    tundercontrolin1830-35

    Cachar,C

    acharHills,EasternDwars

    (1866),Jaintya

    Parganas,KhasiandJaintyas,NagaHills.

    ory

    ConqueredfromBhonslein1818;

    someareas

    Balaghat,

    Betul,Bhandara,Bilaspur,Chanda,Chhindwara,

    leftund

    erBhonsletill1854

    Damoh,H

    oshangabad,Jabalpur,Ma

    ndla,Nagpur,

    Narsinghpur,Nimar(1820),Raipur,

    Sagar,Seoni,Wardah

    Conqueredin1818,underlocalch

    ief

    Sambalpu

    r

    till184

    9

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    38/50

    Datean

    dmodeofacquisition

    Districtsincluded

    Conqueredin1803

    Delhi,Gu

    rgaon,Hisar,Karnal

    ObtainedafterSikhWarin1845-46

    Ambala,Firozpur,Hoshiyarpur,Jala

    ndhar,Kangra,Ludhiana

    ObtainedafterSikhWarin1849

    Amritsar,

    Gurdaspur,Rohtak(India)

    ;Bannu,DeraGhaziKhan,

    DeraIsmailKhan,Gujranwala,Gujr

    at,Hazara,Jhang,Jhelum,

    Kohat,Lahore,Montgomerty,Multa

    n,Muzaffargarh,Peshawar,

    Rawalpin

    di,Shahpur,Sialkot(Pakistan)

    Obtainedin1815

    Shimla

    894),Kumar(1982)

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    39/50

    APPENDIX TABLE 2: ESTABLISHMENT OF LAND REVENUE SYSTEMS IN BRITISH INDIA

    Province Dates of British Formation of land tenure systemland revenue control

    Bengal 1757, 1765 Revenue auctions in early 1770s; old landlords dispossessed,

    Presidency several defaults and famine;old landlords reinstated in 1784;

    Lord Cornwallis announces Permanent Settlement in 1793:

    landlords' rents fixed in perpetuity with stiff penalties for default.

    Madras 1765, 1790-1801 1765 territories came under Permanent Settlement.

    Presidency Munro and Read tried individual system in some districts from

    1796-1805; in 1807 all districts put under landlords for 3 years,

    leases renewed for 10 years in 1810-11; Munro went to England

    and convinced the Directors of the East India Company to order

    an individual settlement in the whole of Madras;order implemented

    after 1820 when leases expired; all future defaulting landlord

    estates also converted to individual system.

    Bombay 1803, 1817-18 Individual system tried in Poona in 1820's, but failed; Wingate andPresidency Goldsmid start Bombay Survey System in 1835 for individual

    settlement system; a few long-standing landlords left in place in

    certain areas.

    North-West 1775, 1801-03 Permanent Settlement in 1775 areas.

    Provinces 3 and 4-year landlord leases in 1802-1819. Question of Permanent

    Settlement widely debated; revenue secretary Holt Mackenzie's

    1819 Minute recognized the existence of village bodies and asked

    for their rights to be protected in any settlement; regulation passedin 1822.

    Oudh 1856 Lord Dalhousie announced settlement with village bodies wherever

    possible; Mutiny in 1857 before this could be done; Lord Canning

    reversed policy in 1858 and brought back landlords (talukdars ) with

    full proprietary rights.

    Central 1818, 1849 No fixed policy until landlord settlement (malguzari )

    Provinces announced in 1853, implemented in 1850s. Sambhalpurdistrict however put under individual cultivator system.

    Berar 1856 Was under Nizam till 1856; landlord system tried found unsuccessful;

    Bombay Survey System (individual cultivator based) implemented.

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    40/50

    APPENDIX TABLE 3: DATA SOURCES AND CONSTRUCTION OF VARIABLES

    Post-Independence dataData on district geography, crop areas, yields, irrigation, fertilizer use, adoption of

    high-yielding varieties: India Agriculture and Climate Data Set (World Bank)

    http://www-esd.worldbank.org/indian/home.cfm

    District level data on literacy, occupation classes, proportion of scheduled castes etc:

    Indian Database Project Vanneman, Reeve and Douglas Barnes (2000)

    Indian District Data, 1961-1991: Machine-readable data file and codebook, Center on Population,

    Gender, and Social Inequality, College Park, Maryland.

    URL: http://www.bsos.umd.edu/socy/vanneman/districts/index.html

    Districts and maps of modern India: http://www.mapsofindia.com

    Village infrastructure variables: State statistical abstracts of 1981

    Land-holdings by size category: Agricultural census of 1990-91.

    Data on poverty and inequality (1972, 1987): based on National Sample Surveys.

    Data on state development expenditure: Database on Poverty and Growth in India compiled by

    Berk Ozler, Gaurav Datt and Martin Ravallion (World Bank)

    Data on state land reforms: Besley and Burgess (2000)

    Historical data

    Districts and maps of British India: Baden-Powell (1892)

    Non-landlord proportion:

    For Uttar Pradesh, Madhya Pradesh and Panjab: computed from district-level Land Settlement

    Reports as the proportion of villages, estates or land area not under the revenue liability of landlords.

    The Settlement Reports were compiled by British administrators in the 1870's and 1880's.

    For Madras Presidency: non-landlord proportion obtained from Baden-Powell (1892).

    For Bombay Presidency, Bengal Presidency, Orissa, Berar and districts for which we do not have

    district-level settlement reports: Non-landlord measure is assigned as zero or one based onhistorical accounts of the dominant land tenure system in the district. Sources of information include

    Baden-Powell (1892), Gupta (1940), Kumar (1982), Misra (1942), Mukherjee (1962) and Patel (1957).

    Land revenue inequality 1885: Digital South Asia Library (http://dsal.uchicago.edu)

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    41/50

    AILEDREGRE

    SSIONSPECIFICATION

    ulturalyield(basedon15majorcrops)

    Nocontrols

    Altitude,latitude

    Meanannualrainfall,

    Soildummies

    Dateo

    fBritish

    coastaldummy

    landreve

    nuecontrol

    (1)

    (2)

    (3)

    (4)

    (5)

    0.101

    0.091

    0.123

    0.117*

    0.1

    57**

    (0.076)

    (0.088)

    (0.086)

    (0.069)

    (0.071)

    0.296

    0.425*

    0.644***

    0.722***

    (0.243)

    (0.245)

    (0.194)

    (0.189)

    0.004

    0.003

    -0.007

    -0.006

    (0.006)

    (0.007)

    (0.007)

    (0.007)

    0.161**

    0.029

    0.006

    (0.067)

    (0.060)

    (0.062)

    0.171*

    0.072

    0.032

    (0.096)

    (0.094)

    (0.093)

    -0.409***

    -0.396***

    (0.085)

    (0.085)

    0.137*

    0.104

    (0.071)

    (0.069)

    0.196***

    0.190***

    (0.053)

    (0.052)

    ontrol

    -0.002***

    (0.001)

    -0.314***

    -0.503***

    -0.782***

    -0.494***

    3.5

    86**

    (0.038)

    (0.145)

    (0.181)

    (0.186)

    (1.502)

    ye

    s

    yes

    yes

    yes

    yes

    166

    166

    166

    166

    1

    66

    0.1

    7

    0.19

    0.23

    0.42

    0

    .43

    cantat5%;***significantat1%

    adjustedfordistrict-levelclustering.

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    42/50

    TOFNEIGHBO

    RINGDISTRICTS

    Landlorddistricts

    Non-landlorddistricts

    Reasonfordifferenceintenure

    Srikakulam

    EastGodavari

    AreasputunderlandlordsandPermanent

    Vishakhapatnam

    SettlementbeforetherestofMadras

    Presidencywasconvertedtoindividualsystem.

    Madurai

    Coimbatore

    AreasputunderlandlordsandPermanent

    Ramanathapuram

    Thanjavur

    SettlementbeforetherestofMadras

    Tiruchirapalli

    Presidencywasconvertedtoindividualsystem.

    Tirunelveli

    Bilaspur

    Raigarh

    Sambalpurdistrictwas

    putunder

    Raipur

    Sambalpur

    individualcultivatorsy

    stem,unlikethe

    restoftheCentralProv

    inces.

    Chandrapur

    Amravati

    Berarprovincewasind

    ividual-based

    Wardha

    Yavatmal

    whileCentralProvinceswaslandlord-based.

    Betul

    Faizabad

    Allahabad

    Oudhdistrictshavegre

    ater%of

    Gonda

    Azamgarh

    landlordsbecauseofch

    angeof

    Pratapgarh

    Basti

    policyafter1857Mutiny.

    Sultanpur

    Gorakhpur

    Jaunpur

    Hardoi

    Farrukhabad

    Oudhdistrictshavegre

    ater%of

    Kheri

    Fatehpur

    landlordsbecauseofch

    angeof

    RaeBareli

    KanpurNagar

    policyafter1857Mutiny.

    Unnao

    Pilibhit

    Shahjahanpur

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    43/50

    NDINEQUALI

    TY

    Meanof

    dep.var

    OLS

    OLS

    OLS

    IV

    OLS

    Fulls

    ample

    Fullsample

    Neighborsonly

    Fullsample

    StateFE

    (1)

    (2)

    (3)

    (4)

    (5)

    oefficientfrom

    -0.0018

    0.033**

    0.019*

    0.011

    -0.013

    0.018**

    (0.013)

    (0.010)

    (0.010)

    (0.026)

    (0.007)

    atiofrom

    -10.95

    -3.491

    -6.844***

    -4.951

    8.187

    -5.701**

    (3.108)

    (2.466)

    (2.965)

    (13.235)

    (2.275)

    218

    218

    37

    218

    150

    YES

    YES

    YES

    YES

    YES

    N

    O

    YES

    YES

    YES

    YES

    Britishrevenueco

    ntrol

    YES

    YES

    YES

    YES

    YES

    N

    O

    NO

    NO

    NO

    YES

    correctedforNS

    Sregionlevelclustering.

    cantat5%;***s

    ignificantat1%

    de,latitude,mean

    annualrainfall,anddummiesforsoiltypeandcoastalregions.

    atevariationinth

    enon-landlordproportion(WestBengal,Bihar,Gujaratand

    pedfromregressionsinvolvingstatefixedeffects,andthenumberofdistrictsis

    atevariationinth

    enon-landlordproportion.

    henumberofdis

    trictsis184for1981and1

    50for1971.C

    oefficientonnon-landlordproportion

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    44/50

    DEVELOPMEN

    TEXPENDITURE

    Landlor

    dstates

    Non-landlordsta

    tesDifference

    (1

    )

    (2)

    (3)

    (1960rupeespercapita)

    26.38

    44.24

    7.37

    (2.45)

    12.80

    19.18

    5.67

    (1.83)

    29.40

    49.40

    8.18

    (2.54)

    edomesticproduct

    0.0869

    0.1056

    0.0218

    (0.0071)

    0.0497

    0.0639

    0.0195

    (0.0071)

    0.0952

    0.1135

    0.0227

    (0.0074)

    ntheses.

    andnon-landlord

    statesiscomputedbyregressingonstate-level

    on,aftercontrollingforstatedomesticprodu

    ct(SDP)percapitaandyearfixedeffects.

    dhyaPradesh,Orissa,Rajasthan,UttarPrade

    shandWestBengal.

    aPradesh,Assam

    ,Gujarat,Karnataka,Kerala,Maharashtra,PunjabandTamilNadu.

    Mean

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    45/50

    RATES

    Meanof

    dep.var

    O

    LS

    OLS

    IV

    OLS

    Full

    sample

    Neighborsonly

    Fullsample

    StateFE

    (1)

    (2)

    (3)

    (4)

    1991

    2.024

    -0.7

    33***

    -0.178

    -1.998**

    -0.4

    61**

    (0.239)

    (0.423)

    (0.888)

    (0.223)

    0.246

    -0.0

    70***

    -0.045*

    -0.178**

    -0.021

    (0.023)

    (0.026)

    (0.083)

    (0.019)

    0.055

    -0

    .002

    -0.007

    -0.059

    -0.007

    (0.009)

    (0.010)

    (0.039)

    (0.009)

    2

    18

    37

    218

    150

    Y

    ES

    YES

    YES

    YES

    Britishrevenueco

    ntrol

    Y

    ES

    YES

    YES

    YES

    NO

    NO

    NO

    YES

    correctedfordistrict-levelclustering

    cantat5%;***s

    ignificantat1%

    de,latitude,mean

    annualrainfall,anddummiesforsoiltypeandcoastalregions.

    ,homicide,rape,

    kidnap,dacoityandriots.

    andcounterfeiting.

    atevariationinth

    enon-landlordproportion(WestBengal,Bihar,Gujaratand

    pedfromregressionsinvolvingstatefixedeffects,andthenumberofdistrictsis

    atevariationinth

    enon-landlordproportion.

    henumberofdis

    trictsis184for1981and1

    50for1971.

    Coefficientonnon

    -landlordproportion

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    46/50

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    47/50

    Fig 2: Land tenure and land inequality

    Lan

    downershipinequality(Gini)

    A. Provinces 1885Nonlandlord proportion

    0 .25 .5 .75 1

    0

    .25

    .5

    .75

    1

    CP

    Oudh

    NWP

    Madras

    Panjab

    BerarBombay

    La

    ndrevenueinequality(Gini)

    B. Uttar Pradesh districts 1948Nonlandlord proportion

    0 .25 .5 .75 1

    .25

    .5

    .75

    1

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    48/50

    Fig 3: Agricultural yields in Colonial period

    Logriceyield

    A. Uttar Pradesh rice yields: 1870sNonlandlord proportion

    0 1

    1.95945

    .508931

    Logwheatyield

    B. Uttar Pradesh wheat yields: 1870sNonlandlord proportion

    0 1

    1.08671

    1.37976

    Logriceyield

    C. Tamil Nadu districts 1911Nonlandlord proportion

    .373244 .99279

    .122169

    .633193

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    49/50

    Fig 4: Instrumental variables strategy

    Non

    landlord

    proportion

    Kernel regressionsDate of British conquest

    Log

    agriculturalyield

    Nonlandlord prop.(first stage)Log yield(reduced form)

    1765 1800 1820 1856

    .125587

    .876013

    .194232

    .155067

  • 7/30/2019 Abhijit Banerjee and Lackshmi the Legaby of Colonial Land

    50/50

    Fig 5: Investment and productivity time series

    A. Proportion of irrigated areayear

    Landlord districts Nonlandlord districts

    1960 1965 1970 1975 1980

    .176707

    .466565

    B. Fertilizer usageyear

    Landlord districts Nonlandlord districts

    1960 1965 1970 1975 1980 1985

    .346324

    85.713

    C. Mean log yieldyear

    Landlord districts Nonlandlord districts

    1960 1965 1970 1975 1980 1985

    .488489

    .418232

    D. Log rice yield: Tamil Nadu districtsyear

    Landlord districts Nonlandlord districts

    1901 19111917 1927 1937 1947 1957 1967 1977

    .148565

    .773232