Historical Ethnic Homelands and Income Convergence in Africa

Abstract

This paper tests the cross-sectional income convergence in historical African ethnic homelands proxied by per capita CO2 emissions between 1850 and 2005 using both parametric and non-parametric tests of cross-sectional income distribution modality. We report that the cross-sectional income distribution in historical African ethnic homelands exhibits two very persistent steady states: one very low and one medium-to-high. Excluding from the analysis those areas that had no CO2 emissions throughout the sample period -although they were inhabited -we find that ethnic homeland areas still share two distinct steady states after the 1940s. Our study contributes to the literature on income convergence in ethnically divergent areas and more specifically in the historical ethnic homelands in the African continent.