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Unformatted text preview: ted. The dependent variable is the natural log of real per capita
GDP in 2000, ln y. The slave export variable ln(exports/area) is the natural log of the total number of slaves
exported from each country between 1400 and 1900 in the four slave trades normalized by land area. The
colonizer ﬁxed effects are indicator variables for the identity of the colonizer at the time of independence.
Coefﬁcients are reported with standard errors in brackets. ∗∗∗ , ∗∗ , and ∗ indicate signiﬁcance at the 1%, 5%,
and 10% levels. for slave exports remains negative and signiﬁcant, and the magnitude of the estimated coefﬁcient actually increases.9
9. One may also be concerned that the inclusion of the countries in southern
Africa—namely South Africa, Swaziland, and Lesotho—may also be biasing the
results. As I report in the Appendix, the results are robust to also omitting this Direction of causality
OLS estimates show there is a relationship between slave exports and
current economic performance
Still unclear whether slave trades have a causal impact on current income
Alternative explanation for relationship: societies that were initially under developed selected into slave
trades these societies continue to be under developed today
Therefore we observe a negative relationship between slave exports and
current income even though the slave trades did not have any effect on
subsequent economic development Two strategies to evaluate whether there is a causal effect of th...
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 Spring '14
 PatrickFrancois

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