Trade and Colonial Status

Authors: de Sousa, José; Lochard, Julie

Source: Journal of African Economies, Volume 21, Number 3, 1 June 2012 , pp. 409-439(31)

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Abstract:

Does colonisation explain differences in trade performance across developing countries? In this paper, we analyse the differential impact of British versus French colonial legacies on the current trade of African ex-colonies. We initially find that former British colonies trade more, on average, than do their French counterparts. This difference might be the result of the relative superiority of British institutions. However, a core concern is the non-random selection of colonies by the British. Historians argue that with Britain, trade preceded colonisation. Using an instrument based on colonisation history to control for this endogeneity, we find no evidence of a systematic difference between the British and French colonial legacies with respect to trade. This finding suggests that the apparent better performance of British ex-colonies might be instead explained by pre-colonial conditions.

Keywords: F10; F54; O55

Document Type: Research article

DOI: http://dx.doi.org/10.1093/jae/ejs001

Publication date: 2012-06-01

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The Journal of African Economies is a vehicle to carry rigorous economic analysis, focused entirely on Africa, for Africans and anyone interested in the continent - be they consultants, policymakers, academics, traders, financiers, development agents or aid workers. Each issue of the Journal of African Economies contains applied research of the highest standard, together with a comprehensive book review section, and a listing of the current working papers from around the world.