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Endogenizing fractionalization

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Author Info
LEESON, PETER T.

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Abstract

In this paper I identify fractionalization as a consequence rather than solely a cause of poor institutions. I investigate how heterogeneous agents in precolonial Africa relied on social distance-reducing signals to make trade with one another possible. I then show how colonial institutions created noise in these signals, inhibiting widespread cooperation. By stifling trade between diverse agents, colonial institutions contributed to Africa s poor economic growth.

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Publisher Info
Article provided by Cambridge University Press in its journal Journal of Institutional Economics.

Volume (Year): 1 (2005)
Issue (Month): 01 (June)
Pages: 75-98
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Handle: RePEc:cup:jinsec:v:1:y:2005:i:01:p:75-98_00

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  3. Carsten Herrmann-Pillath, 2006. "The true story of wine and cloth, or: building blocks of an evolutionary political economy of international trade," Journal of Evolutionary Economics, Springer, vol. 16(4), pages 383-417, October. [Downloadable!] (restricted)
  4. Dalibor Roháč, 2008. "The unanimity rule and religious fractionalisation in the Polish-Lithuanian Republic," Constitutional Political Economy, Springer, vol. 19(2), pages 111-128, June. [Downloadable!] (restricted)
  5. Peter Leeson, 2007. "Efficient anarchy," Public Choice, Springer, vol. 130(1), pages 41-53, January. [Downloadable!] (restricted)
  6. Mehmet Karacuka & Martin Leroch, 2006. "Signalling in Social Networks: An Empirical Study of Denominational Fractionalization in the USA," Working Papers 0610, Ege University, Department of Economics. [Downloadable!]
  7. Geoffrey M. Hodgson, 2006. "Instituciones, recesiones y recuperación en las economías en transición," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 43-68, July-Dece. [Downloadable!]
  8. Carsten Herrmann-Pillath, 2009. "Diversity, identity, and the indeterminacy of the size of nations," European Journal of Law and Economics, Springer, vol. 27(1), pages 15-38, February. [Downloadable!] (restricted)
  9. Anthony Carilli & Christopher Coyne & Peter Leeson, 2008. "Government intervention and the structure of social capital," The Review of Austrian Economics, Springer, vol. 21(2), pages 209-218, September. [Downloadable!] (restricted)
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