Dynamic ethnic fractionalization and economic growth
AbstractIn their survey of the literature on ethnic fractionalization and economic performance, Alesina and La Ferrara (2005) identify two main directions for future research. One is to improve the measurement of diversity and the other to treat diversity as an endogenous variable. This paper tries to address these two issues: it investigates the effects of ethnic fractionalization on economic growth across countries using unique time-varying measures. We first replicate the finding of a weak effect of exogenous diversity on growth and then we show that accounting for how diversity changes over time and treating it as an endogenous variable makes a difference. Once diversity is instrumented (with lagged diversity and latitude), it shows a significant negative impact on economic growth which is robust to different specifications, polarization measures, econometric estimators, as well as to the use of an index of ethnic-religious-linguistic fractionalization.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.
Volume (Year): 20 (2011)
Issue (Month): 2 ()
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Other versions of this item:
- Campos, Nauro F. & Saleh, Ahmad & Kuzeyev, Vitaliy S., 2009. "Dynamic Ethnic Fractionalization and Economic Growth," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 30, Verein für Socialpolitik, Research Committee Development Economics.
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- Z12 - Other Special Topics - - Cultural Economics - - - Religion
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- H1 - Public Economics - - Structure and Scope of Government
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- Gardeazabal, Javier, 2011. "Linguistic Polarization and Conflict in the Basque Country," DFAEII Working Papers 2011-02, University of the Basque Country - Department of Foundations of Economic Analysis II.
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