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New evidence on the link between ethnic fractionalization and economic freedom

Author

Listed:
  • Marta Marson

    (University of Torino
    OEET-Turin Centre on Emerging Economies – Collegio Carlo Alberto)

  • Matteo Migheli

    (University of Torino
    OEET-Turin Centre on Emerging Economies – Collegio Carlo Alberto)

  • Donatella Saccone

    (University of Gastronomic Sciences
    OEET-Turin Centre on Emerging Economies – Collegio Carlo Alberto)

Abstract

Among the determinants of economic freedom, the presence of different ethnic groups within a country has sometimes been explored by the empirical literature, without conclusive evidence on the sign of the relation, its drivers, and the conditions under which it holds. This paper offers new evidence by empirically modelling how ethnic fragmentation is related to economic freedom, as measured by the Economic Freedom Index and by each of its numerous areas, components and sub-components. The results provide insights on the components driving the effect and, interestingly, detect notable differences between developed and developing countries.

Suggested Citation

  • Marta Marson & Matteo Migheli & Donatella Saccone, 2021. "New evidence on the link between ethnic fractionalization and economic freedom," Economics of Governance, Springer, vol. 22(3), pages 257-292, September.
    • Handle: RePEc:spr:ecogov:v:22:y:2021:i:3:d:10.1007_s10101-021-00259-6
    DOI: 10.1007/s10101-021-00259-6
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    More about this item

    Keywords

    Economic freedom; Indices of economic freedom; Institutional quality; Ethnic fragmentation;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

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