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Income inequality and export-orinted commecialization in colonial Africa: Evidence from six countries

Hillbom, Ellen LU ; Bolt, Jutta LU ; de Haas, Michiel and Tadei, Federico (2023) In Economic History Review
Abstract
Limited knowledge of African historical inequality trajectories hampers our understanding of inequality outcomes today and leads to a major omission in debates about global inequality. Economies in colonial Africa were characterized by a process of export-oriented commercialization. We hypothesize that this process itself, the capital intensity of the commodities produced, and the relative importance of European and Asian expatriates and settlers in the economy shaped heterogeneous inequality outcomes. We evaluate these hypotheses using 33 social tables from six predominately agricultural countries between 1914 and 1969. Social tables capture income across the full distribution, aggregated in classes. We assess and improve the... (More)
Limited knowledge of African historical inequality trajectories hampers our understanding of inequality outcomes today and leads to a major omission in debates about global inequality. Economies in colonial Africa were characterized by a process of export-oriented commercialization. We hypothesize that this process itself, the capital intensity of the commodities produced, and the relative importance of European and Asian expatriates and settlers in the economy shaped heterogeneous inequality outcomes. We evaluate these hypotheses using 33 social tables from six predominately agricultural countries between 1914 and 1969. Social tables capture income across the full distribution, aggregated in classes. We assess and improve the commensurability of the different social tables. We then apply different inequality metrics, and find that Gini and Theil coefficients and Inequality Extraction Ratios rose over time. Gini coefficients moved in conjunction with the real value of commodity exports per capita. Using Theil decompositions, we observe a trade-off between inequality among African classes on the one hand, and among non-Africans and between races on the other. Whenever present, non-Africans captured a large share of the export profits. Inequality patterns towards the end of the period suggest that capital-intensive commodities were associated with higher levels of inequality in the agricultural sector. (Less)
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author
; ; and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Africa, colonialism, income inequality, export-oriented commercialization
in
Economic History Review
pages
30 pages
publisher
Wiley-Blackwell
external identifiers
  • scopus:85178200431
ISSN
1468-0289
DOI
10.1111/ehr.13304
project
African elites: Wealth accumulation and persistence
language
English
LU publication?
yes
id
6c7f7ab5-0c78-4fd5-bc8d-5e558dea22a4
date added to LUP
2023-12-12 16:19:53
date last changed
2024-01-08 09:37:31
@article{6c7f7ab5-0c78-4fd5-bc8d-5e558dea22a4,
  abstract     = {{Limited knowledge of African historical inequality trajectories hampers our understanding of inequality outcomes today and leads to a major omission in debates about global inequality. Economies in colonial Africa were characterized by a process of export-oriented commercialization. We hypothesize that this process itself, the capital intensity of the commodities produced, and the relative importance of European and Asian expatriates and settlers in the economy shaped heterogeneous inequality outcomes. We evaluate these hypotheses using 33 social tables from six predominately agricultural countries between 1914 and 1969. Social tables capture income across the full distribution, aggregated in classes. We assess and improve the commensurability of the different social tables. We then apply different inequality metrics, and find that Gini and Theil coefficients and Inequality Extraction Ratios rose over time. Gini coefficients moved in conjunction with the real value of commodity exports per capita. Using Theil decompositions, we observe a trade-off between inequality among African classes on the one hand, and among non-Africans and between races on the other. Whenever present, non-Africans captured a large share of the export profits. Inequality patterns towards the end of the period suggest that capital-intensive commodities were associated with higher levels of inequality in the agricultural sector.}},
  author       = {{Hillbom, Ellen and Bolt, Jutta and de Haas, Michiel and Tadei, Federico}},
  issn         = {{1468-0289}},
  keywords     = {{Africa; colonialism; income inequality; export-oriented commercialization}},
  language     = {{eng}},
  month        = {{11}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{Economic History Review}},
  title        = {{Income inequality and export-orinted commecialization in colonial Africa: Evidence from six countries}},
  url          = {{http://dx.doi.org/10.1111/ehr.13304}},
  doi          = {{10.1111/ehr.13304}},
  year         = {{2023}},
}