State Terror and Long-Run Development: The Persistence of the Khmer Rouge

Does mass repression have a long-term economic legacy, and if so, what explains persistence? I argue repression can undermine development by delimiting human capital. I study the aftermath of the Khmer Rouge in Cambodia. The regime implemented a campaign of violence to reorganize society, yet governing elites varied across the communist ideological spectrum. I exploit an arbitrary border that allocated villages to either the loyalist Mok or the relatively moderate Sy in Kampong Speu province. Using a regression discontinuity design, I find villages in the more extremist Southwest zone are poorer today compared with villages in the adjacent West zone, and had lower human capital immediately after the regime. Exposure to more intense repression shapes labor markets and child health, explaining intergenerational persistence. I find no conclusive evidence for other persistence channels. My findings add a novel pathway to the library of mechanisms which explain why historical coercion undermines development.