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The Impact of the Slave Trade on African Economies

The Impact of the Slave Trade on African EconomiesWarren Whatley and Rob Gillezeau May 23, 2009 Contact InformationWarren Whatley, Department of Economics, University of Michigan, 611 Tappan Street, Ann Arbor, MI, Gillezeau, Department of Economics, University of Michigan, 611 Tappan Street, Ann Arbor, MI, paper has three parts. The first part presents econometric evidence showing that increases in the international demandfor enslaved Africans induced a reallocation of resources in Africa towards Slave production and away from other economicpursuits. In the second part, we use this evidence to help specify a theoretical model of conflict and cooperation in Africabefore and after the Slave Trade . Our goal is to reveal the conditions under which the Slave Trade not only reallocatedresources, but also produced several externalities thought to impede long-term development in Africa.

2 The Slave Trade and African Development A discussion of the impact of the slave trade on Africa must begin with Walter Rodney’s book, How Europe Underdeveloped Africa (1972). Rodney argues that the slave trade fundamentally altered African economies. First, the slave trade discouraged state-building and encouraged slave raiding.

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