Uneven Development Paths among Settler Societies, 1870–2000

The development trajectories of different settler economies varied significantly in the long run. This chapter aims to identify some crucial determinants in these divergent trends. It discusses three basic sets of ideas. First, there existed a group of countries - modern ‘settler societies’. Second, settler societies showed quite different economic performances through time, giving place to quite different economies. Third, economic performance is strongly related to patterns of specialization and structural change, and by the distribution of income and wealth. The chapter explores the idea that distribution could have an impact on the pattern of productive and trade specialization. In turn, productive and trade specialization were considered important factors to explain technological change, productivity growth and economic performance. The evidence presented shows that there is a positive relationship between inequality and the specialization in low value-added activities. Keywords:development paths; settler economies; settler societies; value-added activities