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The hazards of piecemeal reform: british civil courts and the credit market in colonial India

机译:零碎改革的危害:英国公民法院和殖民地印度信贷市场

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摘要

The colonial experience of developing countries provides valuable evidence regarding the impact of legal and institutional innovations on economic growth. However, there has been little effort by economists to study colonial policies to gain theoretical insights into the process of institutional reform. This paper considers the introduction of civil courts in colonial India and its impact on agricultural credit markets in the Bombay Deccan. Drawing on historical records and a formal analysis of the credit market, the paper finds that the reform led to increased competition among lenders. Ex ante, we expect that this would have raised farmers' welfare. But increased competition also reduced lenders' incentives to subsidize farmers' investments in times of crisis, leaving them more vulnerable in bad times.
机译:发展中国家的殖民体验为法律和体制创新对经济增长的影响提供了宝贵的证据。 但是,经济学家几乎没有努力研究殖民政策,以获得对机构改革进程的理论见解。 本文考虑了殖民地印度民事法院的引入及其对孟买Deccan的农业信贷市场的影响。 论文借鉴了历史记录和对信贷市场的正式分析,该论文发现改革导致贷方之间的竞争增加。 前赌注,我们预计这将提高农民的福利。 但增加的竞争也减少了贷方在危机时期补贴农民投资的贷款,让他们更加脆弱。

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