Capitanias Hereditárias e desenvolvimento econômico: herança colonial sobre desigualdade e instituições

Abstract

This study aims to analyze the possible effects of the colonial legacy in the formation of Brazilian municipalities on their current conditions of land and income inequality and on the quality of institutions. In particular, we employ area, latitude, longitude and date of foundation to identify the municipalities belonging to the Capitanias Hereditárias. Next we estimate whether this historical characteristic of the municipalities is correlated with current institutions of municipalities considering various controls, such as proportional area of Capitania, having belonged to the cycles of sugarcane and gold, to be at coast, distance from Portugal, soil type, amount of rain per year, altitude, average temperature, and municipal socioeconomic variables. The results suggest in a robust manner that the municipalities that belonged to the Capitanias Herditárias (increase in one standard deviation) is associated with a greater concentration of land (Agricultural Census 1996) as measured by the Gini index (increase in half of standard deviation), with a lower level of local public expenditure and less political persistence. However, we find no robust association of that historical characteristic with the following indicators: Inequality of income, municipal gross domestic product per capita, and number of public bank branches, notary and public businesses in the municipality, local governance and access to justice.