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«Abstract We examine the effects of precolonial and colonial legacies on the current economic growth rates of ex-colonies. We find that precolonial ...»

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5 Summary and Conclusion This study examines the effects of precolonial and/or colonial legacies on the current economic growth rate of ex-colonies. For this purpose, proxy variables for the precolonial and colonial legacies are added to Barro’s (1991) economic growth model as additional explanatory variables. The date of agriculture, the technology level AD 1500, the population density AD 1500, the state antiquity index AD 1950, and the urbanization index are used as proxies for the precolonial legacies. On the other hand, the colonial duration and immigrant ratio variables are used as proxies for colonial legacies.

In terms of the precolonial and colonial legacies, our findings are as follows. First, irrespective of the precolonial variable included in the model, it has a significantly positive relationship with the current economic growth rate. Furthermore, the model’s explanatory power is high. This implies that there is a close and strong relationship between the current economic growth rate and the precolonial legacies and, furthermore, that the variations in the current economic growth rates of the ex-colonies can be explained 22 primarily by the precolonial legacies. Second, colonial legacies have ambivalent effects on the current economic growth rate. That is, the immigrant ratio has a positively significant relationship with the economic growth rate, and the colonial duration variable has a negatively significant relationship. As a result, the overall effect of colonial legacies on the current economic growth rate is uncertain, and is determined by the special circumstance of each ex-colony. For example, the United States has a dominant positive effect.

On the other hand, the growth rates of the Sub-Saharan African ex-colonies are dominated by the negative effects. In the case of Korea, the overall effect of colonial legacy is not substantially different from zero.

This implies that the current high economic growth rate of Korea is mainly the consequence of precolonial legacies. This result differs from those in previous studies that the high Korean economic growth rate was formed during the colonial period.

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Here, we provide the sources of the data used in our empirical examinations. These are provided in the order that they appear in the paper. When the URLs that contain the data sets are available, we provide these too.

• Growth rate of GDP per capita (GR): the average growth rate of GDP on purchasing power parity (PPP) per capita of each country between 1960 and 2000. The unit of GDP is USD of 1997. Glaeser,

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• Growth rate of GDP per capita (GDPR): the average growth rate of GDP on purchasing power parity (PPP) per capita of each country in 1960. Data source is the same as GR.

• Average schooling years per capita (SKULY): the average schooling years of the adult population aged 25 and over in 1960. Barro and Lee (2000).


• Primary school enrollment ratio (SKULR): the primary school enrollment ratio of each country in

1960. Barro and Lee (2000).


• Land ownership Gini coefficient (LGINI): the land ownership Gini coefficient of each country for the period 1960–1970. Deininger and Olinto (1999).


• Share of the middle class (MIDCLS): the share of the third and fourth quintiles in income distribution of each country in early 1960s. Perroti (1996).

• Adelman and Morris index (ADELMO): the socioeconomic development index constructed by Adelman and Morris (1967). The index is computed by measuring 20 variables for 71 developing countries. These variables include the school enrollment rate, income distribution status, literacy, and so on. Temple and Johnson (1998; the original data are from Adelman and Morris, 1967).

• Date of agriculture (AGRI): the years from the agricultural transition to the present for each country, where the present is AD 2000. Putterman and Trainor (2006).


• Technology Levels (TECHNOs): the technology level of each country in AD 1500, AD 0, 1000 BC.

TECHNOs are distinguished by attaching the years (e.g., TECHNO AD 1500). Comin, Easterly, and Gong (2010).


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• Population density 2 (POPDEN2): the ratio defined as (Total population)/(Potentially arable land area) of each country in AD 1500. The potentially arable land area data are provided in the Food and Agricultural Organization (FAO). Bandyopadhyay and Green (2012).


• State antiquity indices (STATEs): For every 50 years, Putterman (2007) scores the political system of each country from AD 1 to AD 1950. The scores range from 0 to 50, and they are determined by accommodating the existence of a government, the proportion of the territory covered by the government, and the fact that a government is indigenous or externally established. We denote the 5%-discounted sum of the scores from AD 50 to AD XX as STATE AD XX. Putterman’s webpage

provides STATE AD 50 and STATE AD 1950 (version 3.1):


Sometimes, we simply denote STATE AD 1950 as STATE for brevity. Chanda and Putterman (2007)

also provide STATE AD 500 and STATE AD 1000:


• Urbanization rate (URBR): the percentage of people residing in cities with a population greater than 20,000. Bandyopadhyay and Green (2012; the original data are from Chandler, 1987).

• Biogeographic endowmwnt (BIOGEO): the first principal component of biogeographical components Plants and Animals as defined by Olsson and Hibbs (2005).


• Immigrant ratio (IMMIGR): the percentage ratio of Europeans or settlers from colonial ruler countries to the total population in each country in 1900; for Korean data, this is defined as the ratio of Japanese residents in Korea to the total population of Korea in 1913. Acemoglu, Johnson, and Robinson (2001) provide most data used in this study; Korean data are collected from Angeles (2007; the original data are from Etemand, 2000).


• Colonial duration (DURTN) and independence year (INDEPY): colonial duration is defined as the difference between the independence year and the colonization year (COLOY). Olsson (2004; the original data are from Grier, 1999, and CIA, 2003; Australia and New Zealand data are from Chanda and Putterman, 2007).

• Continent dummies (CNTNTD): dummy variables indicating Asia, Africa, North America, South America, and Oceania. Nunn and Puga (2012).


• Colonial dummies (COLDUM): a dummy variable indicating ex-colonies.

• Colonial ruler dummies (COLRUD): dummy variables indicating UK, France, Spain, and other colonial rulers. Nunn and Puga (2012).


• Neo-European country dummy (NEOEUROPE): a dummy variable indicating Neo-European countries.

• Legal origin dummies (LEGORGD): dummies identifying the legal origin of each country’s commercial law tradition according to English commercial law or French commercial codes. La Porta, Lopez-de-Silane, Shleifer, and Vishny (1999).


• Malaria ecology (MALA): a spatial index throughout the world that relates the stability of malaria transmission to biological characteristics of vector mosquitoes. Weil (2005; the original data are from Kiszewski, Mellinger, Spielman, Malaney, Sachs, and Sachs, 2004).


• Landlocked country dummy (LNDLCKD): a dummy variable indicating whether a country is landlocked. Nunn and Puga (2012).


• Ethnic diversity index (ETHDVI): probability that two randomly selected individuals from a country are from different ethnolinguistic groups, as defined by Alesina, Devleeschauwer, Easterly, Kurlat, and Wacziarg (2003).


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• Sub-Saharan Africa dummy (SAHARAD): a dummy variable indicating Sub-Saharan African countries. Nunn and Puga (2012).


• Rule of law index (RLAW): six aggregate indicators of each country in 2000 constructed by Kaufmann, Kraay, and Zoido-Lobaton (2002) that correspond to six fundamental concepts of governance. Rodrik, Subramanian, and Trebbi (2004).


• Absolute latitude (LATI): the distance from the equator to each country. La Porta, Lopez-de-Silane, Shleifer, and Vishny (1999).


• Near coast (NECO): the percentage of the land area within 100 km of the nearest ice-free coast in each country.


• Investment rate (INVR): the average investment rate of each country between 1960 and 2000. Weil (2005; the original data are from Penn World Table 6.1.).


• Coups frequency (COUPS): the average number of revolutions and coups per year between 1970 and

1985. Sachs and Warner (1997; the original data are from Barro and Lee, 2000).


• Real exchange rate overvaluation (OVEREXCHNGR): the degree to which the exchange rate of each country is overvalued, on average, between 1960 and 1998. Easterly and Levine (2003).


• Population increase rate (POPINCR): the population increase rate of each country between 1960 and

2000. Weil (2005).

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• Inflation rate (INFR): the average inflation rate of each country between 1960 and 1990. Sachs and Warner (1997).


• Life expectancy (LIFE): life expectancy of each country in 1960. Sala-i-Martin (1997a, 1997b).


• Real exchange rate distortion index (EXCHNGRDIST): the real exchange rate distortion used by Levine and Renelt (1992; the original data are from Dollar, 1992).

• Ratio of natural resource exports to GDP (NATUALEXP): the ratio of natural resource exports to GDP of each country in 1970. Natural resource exports are the sum of exports of primary agriculture, fuels, and minerals. Sachs and Warner (1997).


• Share of government investments (PUBINV): the average share of public investment of GDP of each country between 1960 and 1965. Sala-i-Martin (1997a, 1997b).


References ACEMOGLU, D., JOHNSON, S., AND ROBINSON, J. (2001): “The Colonial Origins of Comparative Development: An Empirical Investigation,” American Economic Review, 91, 1369–1401.

ACEMOGLU, D., JOHNSON, S., AND ROBINSON J. (2002): “Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution,” Quarterly Journal of Economics, 117, 1231–1294.

ACEMOGLU, D. AND JOHNSON, S. (2005): “Unbundling Institutions,” Journal of Political Economy, 113, 949–995.

ADELMAN I. AND MORRIS, C. (1967): Society, Politics and Economic Development. Baltimore: The Johns Hopkins University Press.

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ALESINA, A., DEVLEESCHAUWER, A., EASTERLY, W., KURLAT, S., AND WACZIARG, R. (2003): “Fractionalization,” Journal of Economic Growth, 8, 155–194.

AMSDEN, A. (1989): Asia Next Giant: South Korea and Late Industrialization. New York: Oxford University Press.

ANGELES L. (2007): “Income Inequality and Colonialism,” European Economic Review, 51, 1155–1176.

BANDYOPADHYAY, S. AND GREEN, E. (2012): “The Reversal of Fortune Thesis Reconsidered,” Journal of Development Studies, 48, 817–831.

BARRO, R. (1991): “Economic Growth in a Cross Section of Countries,” Quarterly Journal of Economics, 106, 407–443.

BARRO, R. AND LEE, J. (2000): “International Data on Educational Attainment: Updates and Implications,” CID Working Paper, Harvard University.

BARRO, R. AND MCCLEARY, R. (2003): “Religion and Economic Growth,” Working paper, Harvard University.

BERTOCCHI, G. AND CANOVA, F. (2002): “Did Colonization Matter or Growth? An Empirical Exploration into the Historical Causes of Africa’s Underdevelopment,” European Economic Review, 46, 1851–1871.

BHATTACHARYYA, S. (2009): “Root Causes of African Underdevelopment,” Journal of African Economies, 18, 745–780.

BLEANEY, M. AND DIMICO, A. (2011): “Biogeographical Conditions, the Transition to Agriculture, and Long-Run Growth,” European Economic Review, 55, 943–954.

BLOCK, S. (2001). “Does Africa Grow Differently?,” Journal of Development Economics, 65, 443–467.

BLOOM, D. AND SACHS, J. (1998): “Geography, Demography, and Economic Growth in Africa,” Brookings Papers on Economic Activity, 1998:2, 207–295.

BOCKSTETTE, V., CHANDA, A., AND PUTTERMAN, L. (2002): “States and Markets: The Advantage of an Early Start,” Journal of Economic Growth, 7, 347–369.

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CHANDLER, T. (1987): Four Thousand Years of Urban Growth: An Historical Census. Lewiston, NY: The Edwin Mellen Press.

CIA (2003): The World Factbook.

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