Abstract—The Plantation economy which today dominates the economies of many developing countries often regarded as a product of colonialism. Despite of its earning capacity, it is subjected to several criticism. The paper seeks to give a historical account of the emergence of plantation economy in different parts of the world and tries to assess its role in the development of the areas which are dominated by plantation economy. While doing so the paper would definitely look into the features of plantation economy and the changes the plantation economy inflicts to a particular area after its inception.