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Economic freedom, ethnic separatism, and ethnic conflict

Author

Listed:
  • Evan Osborne

    (Wright State University and Soochow University, Taiwan)

Abstract

Ethnic conflict has not been tested using economic theory, except its most extreme forms - violence and warfare. This paper adopts the newer economic approach to conflict to analyze ethnic conflict more broadly defined. The analysis is able for the first time to derive equilibrium discrimination by a dominant group and separatism by a weaker group. Consistent with the predictions developed, cross-sectional instrumental-variables estimates and other evidence indicate that government restrictions on commerce promote separatism and conflict and hamper trust. Economic freedom is thus argued to be a key if thus far largely neglected force for ethnic cooperation within states, consistent with the empirical findings for nation-state interactions.

Suggested Citation

  • Evan Osborne, 2010. "Economic freedom, ethnic separatism, and ethnic conflict," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(1), pages 367-381, September.
    • Handle: RePEc:jda:journl:vol.44:year:2011:issue1:pp:367-381
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    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v044/44.1.osborne.html
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    Citations

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    Cited by:

    1. Ehrke, Jürgen, 2012. "How to assist separatists in breaking up a country... or, rather, not: The role of decentralization and development assistance," MPRA Paper 44045, University Library of Munich, Germany.
    2. Olalekan C. Okunlola & Olumide A. Ayetigbo & Sam O. Ajiye, 2022. "Does a free market system reduce conflict in Africa?," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 147-170, June.
    3. Olalekan C. Okunlola & Olumide A. Ayetigbo, 2022. "Economic Freedom and Human Development in ECOWAS: Does Political-Institutional Strength Play a Role?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1751-1785, September.

    More about this item

    Keywords

    Ethnic Conflict; Discrimination; Economic Freedom;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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