The Role of Institutions, Ethnic Fractionalization and Colonization and Their Impact on Economic Growth and Development in Democratic Republic of Congo, Ethiopia, Eritrea and Kenya.

Sarah Hall (Frankfurt School of Finance and Management)
Mabel Ollimo (Frankfurt School of Finance and Management)

Abstract: In this thesis, we will explore what led to the economic development and growth or lack of, in four African Countries with an imperial history. The countries chosen, have two different modern trajectories, the first of the countries; The Democratic Republic of Congo and Kenya have a history of European colonization, whilst Ethiopia and Eritrea, resisted European colonization. In this study, we will look at the reasons why the countries developed the way they did, what led to their colonization or resistance, how the different type of settlements influenced the already existing formal or informal institutions or led to their creation, and if there is a relationship between introducing these post-modern institutional structures on the economic development of each country and to what extent did that affect economic, political and social growth. The main idea behind this thesis is to check which existing literature already exists to explain the modern trajectories and to what extent did they go, we will also look at arguments which may lead to current ideas and theories in the formulation of this research. We are aware that this type of research topic is new in the academic world and will be adding to the nonexistent research on the African Countries we have chosen. We will also use the new institutional economics ideas to help explain some of the results we might find.

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