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Did Colonization Matter for Growth? An Empirical Exploration into the Historical Causes of Africa's Underdevelopment

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Bertocchi, Graziella
Canova, Fabio

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Abstract

This paper investigates the impact of twentieth-century European colonization on African countries. We find that colonization mattered for growth. The following had some beneficial growth effects: being a dependency rather than a colony; being a colony of France or the United Kingdom rather than Belgium, Italy or Portugal; and being less exploited. On average, growth accelerates after independence. Variables proxying for colonial heritage add explanatory power to standard growth regressions, while indicators for human capital and political and ethnic instability lose significance. The coefficient of a dummy for sub-Saharan Africa becomes less significant in a cross section of 98 countries after controlling for colonial experience.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1444.

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Date of creation: Sep 1996
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Handle: RePEc:cpr:ceprdp:1444

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Keywords: Africa; Colonization; Growth;

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Find related papers by JEL classification:
E00 - Macroeconomics and Monetary Economics - - General - - - General
N10 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - General, International, or Comparative
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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  1. Kalemli-Ozcan, Sebnem & Reshef, Ariell & Sorensen, Bent E & Yosha, Oved, 2006. "Why Does Capital Flow to Rich States?," CEPR Discussion Papers 5635, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Galor, Oded & Moav, Omer & Vollrath, Dietrich, 2008. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence," CEPR Discussion Papers 6751, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Oded Galor & Omer Moav & Dietrich Vollrath, 2005. "The Emergence of Human Capital Promoting Institutions in the Process of Development," GE, Growth, Math methods 0508008, EconWPA. [Downloadable!]
  4. Oded Galor & Quamrul Ashraf, 2008. "Human Genetic Diversity and Comparative Economic Development," Working Papers 2008-3, Brown University, Department of Economics. [Downloadable!]
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  5. Olsson, Ola, 2004. "Unbundling Ex-Colonies: A Comment on Acemoglu, Johnson, and Robinson, 2001," Working Papers in Economics 146, Göteborg University, Department of Economics. [Downloadable!]
  6. L Angeles, 2005. "Income Inequality and Colonialism," Centre for Growth and Business Cycle Research Discussion Paper Series 66, Economics, The Univeristy of Manchester. [Downloadable!]
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  7. Pierre-Richard Agénor, 2006. "A Theory of Infrastructure-led Development," Centre for Growth and Business Cycle Research Discussion Paper Series 83, Economics, The Univeristy of Manchester. [Downloadable!]
  8. Jones, Patricia, . "Did the Colonial Powers Pick Economic Winners?," Vassar College Department of Economics Working Paper Series 89, Vassar College Department of Economics. [Downloadable!]
  9. Oded Galor & Omer Moav & Dietrich Vollrath, 2004. "Land Inequality and the Origin of Divergence and Overtaking in the Growth Process," GE, Growth, Math methods 0410004, EconWPA. [Downloadable!]
  10. Daron Acemoglu & Simon Johnson & James A. Robinson, 2005. "Los orígenes coloniales del desarrollo comparativo: una investigación empírica," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 7(13), pages 17-67, July-Dece. [Downloadable!]
  11. Graziella Bertocchi & Chiara Strozzi, 2008. "International Migration and the Role of Institutions," Center for Economic Research (RECent) 012, University of Modena and Reggio E., Dept. of Economics. [Downloadable!]
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  12. Matthias Cinyabuguma & Louis Putterman, 2006. "Sub-Saharan Growth Surprises: Geography, Institutions And History in an all African Data Panel," Working Papers 2006-21, Brown University, Department of Economics. [Downloadable!]
  13. Pierre-Richard Agénor, 2006. "A Theory of Infrastructure-led Development," The School of Economics Discussion Paper Series 0640, Economics, The University of Manchester. [Downloadable!]
  14. Oded Galor & Omer Moav & Dietrich Vollrath, 2006. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions, and Great Divergence," Working Papers 2006-14, Brown University, Department of Economics. [Downloadable!]
  15. Chris Papageorgiou & Winford H. Masanjala, . "Initial Conditions, European Colonialism and Africa's Growth," Departmental Working Papers 2006-01, Department of Economics, Louisiana State University. [Downloadable!]
  16. Nathan Nunn, 2004. "Slavery, Institutional Development, and Long-Run Growth in Africa, 1400--2000," International Trade 0411007, EconWPA. [Downloadable!]
  17. A. Javier Hamann & Alessandro Prati, 2003. "Why Do Many Disinflations Fail? The Importance of Luck, Timing, and Political Institutions," IMF Working Papers 02/228, International Monetary Fund. [Downloadable!]
  18. Nathan Nunn, 2005. "Historical Legacies: A Model Linking Africa's Past to its Current Underdevelopment," Development and Comp Systems 0508008, EconWPA. [Downloadable!]
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  19. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  20. Oded Galor & Omer Moav & Dietrich Vollrath, 2005. "Land Inequality and the Emergence of Human Capital Promoting Institutions," Development and Comp Systems 0502018, EconWPA. [Downloadable!]
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