The effect of institutional arrangements on economic performance among first nations: Evidence from forestry in BC

Abstract Using a unique data set constructed from timber harvesting opportunities granted or acquired by First Nations (FN) in British Columbia through different kinds of tenure agreements, we investigate what characteristics of the timber, the type of tenure and community characteristics affect harvest outcomes. We find that on average 67% of the available volume has been harvested (measured by the maximum amount that could have been harvested under the tenure) and that as economic theory would predict, more valuable timber, along with more secure harvesting rights, enhance performance. Equally important we find that those tenures held by FN that have engaged in governance reform through changing their political processes also show higher harvest levels. These finding support work elsewhere showing that institutional arrangements are important in explaining improved socioeconomic outcomes, not only for indigenous and non-indigenous communities but society more broadly.