IS INDEPENDENCE GOOD OR BAD FOR DEVELOPMENT IN SMALL ISLAND ECONOMIES? A LONG-RUN ANALYSIS

Ivo Bertram ()

Region et Developpement, 2015, vol. 42, 31-54

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.

Keywords: DECOLONISATION; DEVELOPMENT; POLITICAL STATUS; SMALL ISLAND ECONOMIES; TIME SERIES (search for similar items in EconPapers)
JEL-codes: O11 O47 P51 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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