Table 1 shows the OLS regressions for Equations (1) and (2), using the latent variable for

colonial exports of primary products and manufactured products as the trade variable in (1) and

(2) respectively.

Referring to the results in Table (1), the impact of colonial exports of primary goods on colonial

institutions is negative and statistically significant. Therefore, colonial exports of primary

negatively affect colonial institutions. A higher share of primary products on colonial exports are

associated with worse quality of colonial.

On the other hand, colonial exports of manufactured goods positively affect colonial institution.

The impact of colonial exports of manufactured goods on colonial institutions is positive and

statistically significant.

These results are compatible with our main hypothesis about the resource-curse: Colonizers tend

to use extractive institutions to extract their colony’s natural resources. Therefore, the amount of

resources extracted by the colonizing country is reflected by the amount of primary goods these

colonies export. These high amounts of primary exports are associated with the maintenance of

bad colonial institutions.

The causality between exports of primary products and institutions could have happened in both
directions. On the one hand, colonies abundant in natural resources would be economically important
to France, who would then have an incentive to establish extractive-friendly institutions. Such
institutions are, in turn, detrimental to growth. On the other hand, France would be able to impose
more forced trade with their colonies with weaker institutions. Through forced tradce, France would
undermine the economic perspective of the colonies.