Institutional development and colonial heritage within Brazil

This article analyzes the determinants of local institutions in Brazil. We show

that institutional quality and distribution of land are partly inherited from the

colonial histories experienced by different areas of the country. The sugar cane

boom—characterized by an oligarchic society—is associated with more land

inequality. The gold boom—characterized by a heavily inefficient presence of

the Portuguese state—is associated with worse governance and access to justice.

We do not find similar effects for a postcolonial boom (coffee). We also find

that the colonial episodes are correlated with lower provision of public goods