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Seminar paper from the year 2017 in the subject Economics - Other, grade: 1,3, University of Bonn, language: English, abstract: Current differences in development between North and Latin American countries led to different academic approaches explaining this phenomenon. One thesis is the institutionalist approach with two popular theories brought up by Daron Acemoglu and Engermann and Sokoloff differing in their definition on institutions. Further research confirms these theories in parts depending on their empirical methodology. My empirical work focusses on Engermann and Sokoloff, finding soft evidence for their claim of colonial activities influencing growth paths until today. I do not find evidence for colonial activities and slavery influencing modern income inequality.
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