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<p>This paper investigates the effect of colonial legacy, specifically, the nature of political and administrative power transfer during decolonization, on the level of export product diversification in 76 developing countries from 1995 to 2019. We use OLS estimates as a baseline and address potential endogeneity issues using the Hausman-Taylor estimator and the dynamic panel approach of Kripfganz and Schwarz (2019), which accommodates endogenous regressors and time-invariant variables. The findings suggest that abrupt, uncoordinated, and frequently violent transfers of power to indigenous elites at independence have had enduring adverse effects, contributing to the persistently low levels of export product diversification observed in these countries today. Furthermore, the level of human capital and government effectiveness emerge as key transmission channels through which this historical effect operates. These results remain robust across alternative measures of diversification and when accounting for regional heterogeneity.</p>

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Historical foundations of export product diversification in 76 African and Asian developing countries

  • 期刊论文

  • 发表日期：

    2026年2月23日

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  • Amadou Bobbo,
  • Mermoz Homère III Nsoga Nsoga

摘要

This paper investigates the effect of colonial legacy, specifically, the nature of political and administrative power transfer during decolonization, on the level of export product diversification in 76 developing countries from 1995 to 2019. We use OLS estimates as a baseline and address potential endogeneity issues using the Hausman-Taylor estimator and the dynamic panel approach of Kripfganz and Schwarz (2019), which accommodates endogenous regressors and time-invariant variables. The findings suggest that abrupt, uncoordinated, and frequently violent transfers of power to indigenous elites at independence have had enduring adverse effects, contributing to the persistently low levels of export product diversification observed in these countries today. Furthermore, the level of human capital and government effectiveness emerge as key transmission channels through which this historical effect operates. These results remain robust across alternative measures of diversification and when accounting for regional heterogeneity.