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Is Independence Good Or Bad For Development In Small Island Economies? A Long-Run Analysis

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  • Geoffrey BERTRAM

    (Institute for Governance and Policy Studies, Victoria University of Wellington)

Abstract

It is well established that sovereign independent small islands have lower incomes than politically affiliated islands. Many studies have argued that this is a causal relationship, with independence acting as a drag on development performance. Cross-section data from the past four decades has been viewed as evidence for this hypothesis, but longer-run time series data do not support it. This paper uses time series for GDP, infant mortality, life expectancy and international trade to check whether the emergence of the two modern convergence clubs (sovereign and affiliated) occurred before or after decolonisation. It appears that the two groups of island economies began to diverge about 1920, with separation largely complete by the time political status was assigned during decolonisation in the period 1950-1970. The causes of this early divergence remain unidentified.

Suggested Citation

  • Geoffrey BERTRAM, 2015. "Is Independence Good Or Bad For Development In Small Island Economies? A Long-Run Analysis," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 31-54.
    • Handle: RePEc:tou:journl:v:42:y:2015:p:31-54
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    References listed on IDEAS

    as
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    8. Armstrong, H. & De Kervenoael, R. J. & Li, X. & Read, R., 1998. "A comparison of the economic performance of different micro-states, and between micro-states and larger countries," World Development, Elsevier, vol. 26(4), pages 639-656, April.
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    Cited by:

    1. Jean-François Hoarau & Nicolas Lucic, 2022. "Are real merchandise imports per capita a good predictor for the standard of living for the small island world: Testing for the imports-led growth and the growth-led imports hypotheses in panels over ," TEPP Working Paper 2022-16, TEPP.

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    More about this item

    Keywords

    DECOLONISATION; DEVELOPMENT; POLITICAL STATUS; SMALL ISLAND ECONOMIES; TIME SERIES;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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