The importance of history for economic development

ABSTRACT: This article provides a survey of the growing body of em-pirical evidence that points towards the long-term effects that historic events can exert on current economic development. The most recent studies, using micro-level data and more sophisticated identification techniques, have moved beyond testing whether history matters, and attempt to identify exactly why history matters. The most commonly examined channels include: institutions, culture, knowledge and tech-nology, and movements between multiple equilibria. The article con-cludes with a discussion of the questions that remain and the direct o