Pre-Colonial Religious Institutions and Development: Evidence through a Military Coup

Abstract This paper offers a novel illustration of the political economy religion by examining impact religious elites on development. We compile unique database holy Muslim shrines across Pakistani Punjab and construct historical panel literacy spanning over century (1901–2011). Using 1977 military takeover as universal shock that gave control public goods to politicians, our difference-in-differences analysis shows areas with greater concentration experienced substantially retarded growth in after coup. Our results suggest increase average rate would have been higher 13% post-coup period absence shrine influence. directly address selection concern might be situated predisposed lower expansion. Finally, we argue coup devolved local elites, being more averse education since it undermines their power, suppressed its expansion shrine-dense areas.