Colonial Heritage, International Trade and Economic Development in Africa
摘要
The study argues that the imprints of the former colonial powers on their former colonies in maintaining a beneficial international trade of a supply of raw materials and a demand for finished products were facilitated by the colonial-handover agreements prior to African independence. The study employs the system GMM for 40 African countries to empirically show that international trade has heterogeneous effects on economic development in Africa based on the colonisers and their associated influence. Analysed independently in terms of international trade, former French colonies are shown to have significantly lower economic development than other African countries. On the other hand, former British colonies and the countries colonised by the other former colonisers showed significantly higher economic development. The goal of the study is not to celebrate any former colonial power or new intending powers like China and the USA over another, but to highlight the fact that the choice of trading partners and the nature of international trade is critical to determining its effect on economic development. It is therefore imperative for African leaders to undertake a benefit–cost analysis on their relationships with trading partners in a bit to ensure that their interests are primarily met for a more sustainable economic development.