Sugar trade and the role of historical colonial linkages

Past colonialism has shaped current policies and patterns relating to sugar trade. To examine the effects of historical colonial linkages on sugar trade, the gravity model is estimated for a panel of raw sugar imports into 25 OECD countries from the rest of the world over the 1961-2016 period. Colonial linkages in a North-South direction increase sugar trade, but colonial linkages in a North-North direction decrease it. Several distinct North-South colonial channels are identified. Sugar trade is enhanced by the major empire shipping routes, rail infrastructure, cultural proximity and preferential market access.