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Acemoglu, Johnson, Robinson (2005) (view source)
Revision as of 14:51, 15 May 2012
, 14:51, 15 May 2012→Empirical Questions:
The author attempts to show that Atlantic trade contributed to European growth through an indirect instutional channel as well as via its more obvious direct effects.
*Atlantic trade generated large profits fir for comercial interests in favor of institutional changes in countries that met two crucial criteria:
#easy access to the Atlantic
#Nonabsolutisit initial insitutions
=== How does the author test the hypothesis? ===
The authors test the the idea that WE growth after 1500 was primarily due to growth in countries involved with Atlantic trading or with high potential for Atlantic trading.
Specification 1 (results in table 2)
<math>u_{jt} = d_{t} + \delta_{j} + \sum\limits_{t>=1600} \alpha_{t}. WE_{j}. d_{t} + \sum\limits_{t>=1500} \beta_{t}. PAT_{j}.d_{t}+X`_{jt}.\gamma +\epsilon_{jt}</math>
