Institutional Transplant and Cultural Proximity: Evidence from Nineteenth-Century Prussia

This article presents evidence that cultural proximity between the exporting and the receiving countries positively affects the adoption of new institutions and the resulting long-term economic outcomes. We obtain this result by combining new information on pre-Napoleonic principalities with county-...

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Bibliographic Details
Published in:The Journal of economic history 2019-12, Vol.79 (4), p.1060-1093
Main Authors: Lecce, Giampaolo, Ogliari, Laura
Format: Article
Language:English
Subjects:
19th century
Censuses
Culture
Economic development
Economic growth
Economic history
Economic performance
Linguistics
Proximity
Reforms
Religious identity
Roman civilization
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Summary:This article presents evidence that cultural proximity between the exporting and the receiving countries positively affects the adoption of new institutions and the resulting long-term economic outcomes. We obtain this result by combining new information on pre-Napoleonic principalities with county-level census data from nineteenth-century Prussia. We exploit a quasi-natural experiment generated by radical Napoleonic institutional reforms and the deeply rooted cultural heterogeneity across Prussian counties. We show that institutional reforms in counties that are culturally more similar to France, in terms of religious affiliation, generate better long-term economic performance.
ISSN:0022-0507
1471-6372
DOI:10.1017/S0022050719000366