The comparative effects of independence on trade

We study the impact of independence on former colonies' trade for different empires. * We use original data on pre-independence bilateral trade. * Independence reduces trade (exports and imports) only within the former French empire. * After independence, all former colonies trade more with third countries. * Results are consistent with the long-lasting influence of colonial trade policies. Empirical evidence suggests that belonging to an empire favours trade by lowering transaction costs and establishing preferential trade agreements. Does the end of an empire invert this effect, and if so, t... Mehr ...