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Colonialism and Industrialization: Empirical Results

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  • Alam, M. Shahid

Abstract

This paper presents theory and evidence to show that imperialism was a major factor impeding the spread of the industrial revolution during the century ending in the 1950s. Two empirical results stand out. First, analysis of historical evidence shows that most sovereign countries were implementing active industrial policies during the nineteenth century, while policies in dependent countries were biased in the opposite direction. Second, when allowance is made for economic determinants, industrialization in dependent countries in 1960 is found to be significantly lower than in sovereign countries. This result is shown to be quite robust to changes in data, sample size, functional forms, and specifications of the estimating equations. In particular, the basic results are not affected by the inclusion of a dummy for Sub-Saharan Africa.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37866.

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Date of creation: 1998
Date of revision: 2012
Handle: RePEc:pra:mprapa:37866

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Keywords: Colonialism; Industrialization; Imperialism; Sovereignty; Colony; Open Door Countries; Arthur Lewis; David Landes; Britain; Africa; Asia; Latin America; India; Neo-Marxism; Karl Marx; Dependency Theory; Culture; Climate; Race; Religion; Protection; Free Trade; Friedrich List; Industry; Economies of Scale; External Economies;

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  1. Clark, Gregory, 1987. "Why Isn't the Whole World Developed? Lessons from the Cotton Mills," The Journal of Economic History, Cambridge University Press, vol. 47(01), pages 141-173, March.
  2. Palma, Gabriel, 1978. "Dependency: A formal theory of underdevelopment or a methodology for the analysis of concrete situations of underdevelopment?," World Development, Elsevier, vol. 6(7-8), pages 881-924.
  3. Alam, M S, 1994. "Colonialism, Decolonisation and Growth Rates: Theory and Empirical Evidence," Cambridge Journal of Economics, Oxford University Press, vol. 18(3), pages 235-57, June.
  4. Issawi, Charles, 1961. "Egypt Since 1800: A Study in Lop-sided Development," The Journal of Economic History, Cambridge University Press, vol. 21(01), pages 1-25, March.
  5. Griffin, Keith & Gurley, John, 1985. "Radical Analyses of Imperialism, the Third World, and the Transition to Socialism: A Survey Article," Journal of Economic Literature, American Economic Association, vol. 23(3), pages 1089-1143, September.
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