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Economic Openess, Disciplined Government and Ethnic Peace

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  • Nava Ravi Kumaran
  • Tilak Abeysinghe

Abstract

Many studies have examined the determinants of ethnic conflicts in multi-ethnic developing countries and report a myriad of contributory factors. It is natural to observe many correlates because ethnic wars tend to gain their own momentum and proceed for variety of reasons that are not directly related to the initial causes. Some intervention is necessary to end an ethnic war. The objective of this exercise is to draw attention to conditions necessary to sustain ethnic peace. Good governance and high and shared growth often top the list of conditions necessary to achieve ethnic peace. How to get good governance to developing countries is the key question of interest. To long for an enlightened leader to emerge and set everything right is utopian. In this exercise we argue that openess to foreign trade and investment is a more assured condition to achieve good governance and high growth. Openness acts as a disciplining force on government regardless of whether they are democratic or authoritarian. A theoretical framework and empirical evidence are presented to support the hypothesis.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Governance Working Papers with number 22025.

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Date of creation: Mar 2008
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Handle: RePEc:eab:govern:22025

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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Keywords: openness; disciplined government; quality of governance; Growth; ethnic; conflict; feedback loop;

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  1. Paul Collier & Dominic Rohner, 2008. "Democracy, Development, and Conflict," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 531-540, 04-05.
  2. Fearon, James D. & Laitin, David D., 2000. "Violence and the Social Construction of Ethnic Identity," International Organization, Cambridge University Press, vol. 54(04), pages 845-877, September.
  3. Miguel Braun & Rafael Di tella, 2004. "Inflation, Inflation Variability, and Corruption," Economics and Politics, Wiley Blackwell, vol. 16(1), pages 77-100, 03.
  4. Grier, Kevin B. & Tullock, Gordon, 1989. "An empirical analysis of cross-national economic growth, 1951-1980," Journal of Monetary Economics, Elsevier, vol. 24(2), pages 259-276, September.
  5. Roberto Franzosi, 1989. "One hundred years of strike statistics: Methodological and theoretical issues in quantitative strike research," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 42(3), pages 348-362, April.
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