Comparative studies have suggested that the British colonization is more beneficial than those of France and other colonizers. It is argued that the British cultures and institutions contributed to stable politics and robust economic development of its colonies. However, evidence is still inconclusive because a controlled experiment is very difficult in social science. Vanuatu – a Pacific island – provides an excellent experimental setting for testing the argument. Britain and France established a joint government, the British government, and the French government, which lasted from 1906 until 1980, in the same territory. Local people could choose whether to be tried under the British common law or the French civil law. Nationals of one country could set up corporations under the laws of the other. The case of Vanuatu suggests that political indicators are in favor of Britain, but economic indicators are in of France. The French dominated areas have been more developed than the British dominated areas. The major British trading company established a company under the French law and a certain number of British planters registered themselves in the French residency to attain the benefits of French economic policies.