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On the Dynamics of Ethnic Fractionalization

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Author Info
Campos, Nauro F
Kuzeyev, Vitaliy

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Abstract

Does fractionalization change over (short periods of) time? If so, are there any substantial implications for economic performance? To answer such questions, we construct a new panel data set with measures of fractionalization for 26 former communist countries covering the period from 1989 to 2002. Our fractionalization measures show that transition economies became more ethnically homogenous over such a short period of time, although the same did not happen in terms of linguistic and religious fractionalization. In line with the most recent literature, there seems to be no effect of (exogenous) fractionalization on macroeconomic performance (that is, on per capita GDP growth). However, we find that dynamic ethnic fractionalization is negatively related to growth (although this is still not the case for linguistic and religious fractionalization). These findings are robust to different specifications, polarization measures, instrument sets as well as to a composite index of ethnic-linguistic-religious fractionalization.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6360.

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Date of creation: Jun 2007
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Handle: RePEc:cpr:ceprdp:6360

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Related research
Keywords: ethnic fractionalization; growth; polarization; transition economies;

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Find related papers by JEL classification:
H1 - Public Economics - - Structure and Scope of Government
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
Z12 - Other Special Topics - - Cultural Economics - - - Religion

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