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Are Ethnically Diverse Communities “Bad” Communities? An Empirical Study on Social Capital Formation in Northern Vietnam

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  • Saint-Macary, Camille
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    Abstract

    Using data from rural communities in which ethnic heterogeneity was induced within through involuntary resettlements policies in the 1960s, we estimate the exogenous effect of ethnic heterogeneity on individual participation in local organizations and households’ social network capital. The effect on participation depends on organizations’ political nature and the public nature of managed goods. We find no direct impact on social network capital but an indirect effect through interactions with identity and participation. Results do not confirm theoretical predictions of a negative relationship but show that ethnic heterogeneity can encourage bridging connections, and, as such, fosters innovation and economic development.

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    Bibliographic Info

    Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/11437.

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    Date of creation: Aug 2012
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    Handle: RePEc:dau:papers:123456789/11437

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    Keywords: Economic development; ethnic heterogeneity; resettlements policies;

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