Ahlerup, Pelle () (Department of Economics, School of Business, Economics and Law, Göteborg University) Olsson, Ola () (Department of Economics, School of Business, Economics and Law, Göteborg University)
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The level of ethnic diversity is believed to have significant consequences for economic and political development within countries. In this article, we provide a theoretical and empirical analysis of the determinants of ethnic diversity in the world. We introduce a model of cultural and ge- netic drift where new ethnic groups endogenously emerge among periph- eral populations as a response to an insufficient supply of public goods. In line with our model, we find that the duration of human settlements has a strong positive association with ethnic diversity. Ethnic diversity decreases with the length of modern state experience and with distance from the equator. Both "primordial" and "constructivist" hypotheses of ethnic fractionalization thus receive some support by our analysis.
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Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number
281.
Length: 49 pages Date of creation: 14 Dec 2007 Date of revision: Handle: RePEc:hhs:gunwpe:0281
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden Phone: 031-773 10 00 Web page: http://www.handels.gu.se/econ/ More information through EDIRC
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Find related papers by JEL classification: N40 - Economic History - - Government, War, Law, and Regulation - - - General, International, or Comparative N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Linkages
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