Colonial Legacy, Services Trade and LDCs

34 Pages Posted: 22 Dec 2016

See all articles by Anirudh Shingal

Anirudh Shingal

S.P. Jain Institute of Management & Research; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); University of Bern - World Trade Institute

Date Written: December 2016

Abstract

Existing work examining the trade effect of colonial legacy does not consider services trade or the impact on LDCs. We bridge this gap by providing evidence from the Commonwealth and Francophonie countries assembling a larger, more recent panel (241 countries, over 1995-2010). Commonwealth membership is found to increase services exports by 56.2% in our baseline estimates while being a Francophonie country is associated with four times more trade; both effects are significantly larger than the corresponding goods trade effects. Descriptive statistics reveal the growing reliance of small, low-income former colonies on the respective “colonial groups”. Corroborating this, we find much larger (than average) services trade effects for ex-colonies characterized as LDCs, a significant finding given the links between market access and development. Our results are robust to accounting for China and to Brexit (for the Commonwealth).

Keywords: Colonies, services trade, LDCs, Commonwealth, Francophonie

JEL Classification: F10, F14

Suggested Citation

Shingal, Anirudh, Colonial Legacy, Services Trade and LDCs (December 2016). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2016/70, Available at SSRN: https://ssrn.com/abstract=2888362 or http://dx.doi.org/10.2139/ssrn.2888362

Anirudh Shingal (Contact Author)

S.P. Jain Institute of Management & Research ( email )

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European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

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Italy

University of Bern - World Trade Institute ( email )

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