Was the Wealth of Nations Determined in 1000 B.C.? Executive
Summary — To the extent that history is discussed at all in
economic development, it is usually either the divergence
associated with the Industrial Revolution or the effects of
colonial regimes. Is it possible that precolonial, preindustrial
history also matters significantly for today's national economic
development? The authors find that technology adoption circa
1500 A.D., prior to the era of colonization and extensive
European contacts, predicts approximately 50 percent of cross-
country differences in both current per capita income and
technology in a large cross-section of countries. When exploring
the causes of this extreme persistence in technology, they find
evidence in favor of the importance of the effect of current
adoption on subsequent adoption as the main driver. This leaves
a limited role to country-specific factors such as institutions,
geography, or genes to explain the persistence of technology.
Key concepts include: - Precolonial