Independence and trade: the specic eects of French colonialism Emmanuelle Lavallée¤ Julie Lochardy June 2012z Very preliminary. Please do note cite. Abstract Empirical evidence suggests that colonial rule and subsequent indepen- dence inuence past and current trade of former colonies. Independence ef- fects could dier substantially across former empires if they are related to the end of dierent preferential trade arrangements. Thanks to an original dataset including new data on pre-independence bilateral trade, this paper explores the impact of independence on former colonies' trade (imports and exports) for dierent empires on the period 1948-2007. We show that independence reduces trade (imports and exports) with the former metropole and that this eect is mainly driven by former French colonies. We also nd that, after independence, trade of all former colonies increase with third countries. A close inspection of the eects over time highlights that independence eects are gradual but tend to be more rapid and more intense in the case of exports. These results oer indirect evidence for the long-lasting inuence of colonial trade policies. Author Keywords: Trade; Decolonization; French Empire. JEL classication codes: F10; F54. ¤Université Paris-Dauphine, LEDa, UMR DIAL. Email:
[email protected]. yErudite, University of Paris-Est Créteil. Email:
[email protected]. zWe would like to thank participants at the IRD-DIAL Seminar and participants at the Con- ference on International Economics (CIE) 2012 for useful comments and suggestions. 1 1 Introduction Several studies highlight the consequences of colonial rule on bilateral trade. Mitchener and Wei- denmier (2008) assess the contemporaneous eects of empire on trade over the period 1870-1913.