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Has Colonial Heritage Affected Export Diversification and thus Economic Growth in Former African Colonies?

Nihlwing, Linda LU and Sönne, Nathalie LU (2018) NEKN01 20181
Department of Economics
Abstract
It has long been suggested that a lack of export diversification is one cause of the slow economic growth and low levels of development in African countries. The purpose of this study is to analyse what implication the colonial heritage has for export diversification and economic growth in 45 African countries over the period 1995-2016. The legal framework left in the country by the colonising power is used as a proxy for the contemporary colonial impact. The empirical part of the study was conducted using a panel data regression model with fixed effects. The results suggest that there is a positive relationship between export diversification and economic growth in the sample group. Furthermore, the impact of export diversification on... (More)
It has long been suggested that a lack of export diversification is one cause of the slow economic growth and low levels of development in African countries. The purpose of this study is to analyse what implication the colonial heritage has for export diversification and economic growth in 45 African countries over the period 1995-2016. The legal framework left in the country by the colonising power is used as a proxy for the contemporary colonial impact. The empirical part of the study was conducted using a panel data regression model with fixed effects. The results suggest that there is a positive relationship between export diversification and economic growth in the sample group. Furthermore, the impact of export diversification on growth is less pronounced in countries with civil law systems. On the basis of the results of this study, we find indications that former colonies ability to benefit from diversified exports may to some extent depend on what legal system the colonising power left behind. (Less)
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author
Nihlwing, Linda LU and Sönne, Nathalie LU
supervisor
organization
course
NEKN01 20181
year
type
H1 - Master's Degree (One Year)
subject
keywords
Economic growth, export diversification, Africa, fixed effects, colonial ties, legal framework
language
English
id
8945344
date added to LUP
2018-07-03 14:23:51
date last changed
2018-07-03 14:23:51
@misc{8945344,
  abstract     = {It has long been suggested that a lack of export diversification is one cause of the slow economic growth and low levels of development in African countries. The purpose of this study is to analyse what implication the colonial heritage has for export diversification and economic growth in 45 African countries over the period 1995-2016. The legal framework left in the country by the colonising power is used as a proxy for the contemporary colonial impact. The empirical part of the study was conducted using a panel data regression model with fixed effects. The results suggest that there is a positive relationship between export diversification and economic growth in the sample group. Furthermore, the impact of export diversification on growth is less pronounced in countries with civil law systems. On the basis of the results of this study, we find indications that former colonies ability to benefit from diversified exports may to some extent depend on what legal system the colonising power left behind.},
  author       = {Nihlwing, Linda and Sönne, Nathalie},
  keyword      = {Economic growth,export diversification,Africa,fixed effects,colonial ties,legal framework},
  language     = {eng},
  note         = {Student Paper},
  title        = {Has Colonial Heritage Affected Export Diversification and thus Economic Growth in Former African Colonies?},
  year         = {2018},
}