Much of the work on colonialism has been theoretical or anecdotal. In this
paper, I close the gap between the literature on development and new growth
theory by testing the effect of colonization on subsequent growth and deve
lopment. In a sample of 63 ex-colonial states from 1961-1990, I find that c
olonies that were held for longer periods of time than other countries tend
to perform better, on average, after independence. Finally, I show that th
e level of education at the time of independence can help to explain much o
f the development gap between the former British and French colonies in Afr
ica.