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Trade and Colonial Status

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  • De Sousa, José
  • Lochard, Julie

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.

Suggested Citation

  • De Sousa, José & Lochard, Julie, 2010. "Trade and Colonial Status," Working Papers 210388, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
  • Handle: RePEc:ags:inrasl:210388
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    References listed on IDEAS

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    Cited by:

    1. repec:dau:papers:123456789/9564 is not listed on IDEAS
    2. Amavilah, Voxi Heinrich, 2011. "Romer’s Charter Cities v. Colonization, Imperialism, and Colonialism: A General Characterization," MPRA Paper 29974, University Library of Munich, Germany.
    3. Cristina Terra & Tania El Kallab, 2014. "French Colonial Trade Patterns: European Settlement," THEMA Working Papers 2014-27, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Emmanuelle Lavallée & Julie Lochard, 2012. "Independence and trade: new evidence from French colonial trade data," Post-Print hal-01609979, HAL.
    5. repec:dau:papers:123456789/10246 is not listed on IDEAS

    More about this item

    Keywords

    International Relations/Trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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