It's time for Westernization: the advantages of the early start for long-term economic development at the local level

摘要

This article examines the 'early start' hypothesis at the local level in the context of Australian colonization. It is found that the longer a place experiences economic activity under European management, the higher the level of economic development it achieves in the long-run. A theoretical framework is proposed under which a set of dynamic forces work in aggregate and enhance urban economic development. Results from several robustness checks that account for an array of possible biases validate the initial findings. Overall, the nature of Australian colonization reflects a relatively random variation in the duration of the Western presence at the local level, causing uneven urban development.