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The Impact of Ethnic Heterogeneityon the Quantity and Quality of Public Spending

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  • Louis Kuijs

Abstract

The paper investigates empirically the impact of ethnic heterogeneity on the amount of public spending on health and education and the quality, or “technical efficiency” of spending. While it finds partial evidence for the claim that more heterogeneous societies spend less on public goods, it suggests that heterogeneity significantly affects the efficiency of public expenditure outcomes in terms of social indicators. The results suggest that the impact of heterogeneity on public expenditure outcomes is not just a public choice problem, but also an issue of “technical efficiency.”

Suggested Citation

  • Louis Kuijs, 2000. "The Impact of Ethnic Heterogeneityon the Quantity and Quality of Public Spending," IMF Working Papers 2000/049, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/049
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    Citations

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    Cited by:

    1. Eris, Mehmet, 2010. "Population heterogeneity and growth," Economic Modelling, Elsevier, vol. 27(5), pages 1211-1222, September.
    2. Ugur Ozdemir & Yüksel Alper Ecevit, 2020. "Ethnic Heterogeneity and Public Goods Provision," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 70(2), pages 247-266, December.
    3. Soiliou Namoro, 2008. "Youth Reproductive Health in Sub-Saharan Africa. Is Governance Part of the Problem?," Working Paper 347, Department of Economics, University of Pittsburgh, revised 2009.
    4. Bettin, Giulia & Sacchi, Agnese, 2020. "Health spending in Italy: The impact of immigrants," European Journal of Political Economy, Elsevier, vol. 65(C).
    5. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.
    6. Liang, Li-Lin & Mirelman, Andrew J., 2014. "Why do some countries spend more for health? An assessment of sociopolitical determinants and international aid for government health expenditures," Social Science & Medicine, Elsevier, vol. 114(C), pages 161-168.
    7. Stichnoth, Holger & van der Straeten, Karine, 2009. "Ethnic diversity and attitudes towards redistribution: a review of the literature," ZEW Discussion Papers 09-036, ZEW - Leibniz Centre for European Economic Research.
    8. Benjamin Bridgman, 2004. "Multiethnic Democracy," Departmental Working Papers 2004-02, Department of Economics, Louisiana State University.
    9. Bridgman, Benjamin, 2008. "Why are ethnically divided countries poor?," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 1-18, March.
    10. Serap Elustu, 2021. "Energy Security of the European Union: The Relationship between Energy Import Dependency and Economic Growth," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 71(1), pages 133-162, June.
    11. Schaeffer, Merlin, 2013. "Ethnic diversity, public goods provision and social cohesion: Lessons from an inconclusive literature," Discussion Papers, Research Unit: Migration, Integration, Transnationalization SP VI 2013-103, WZB Berlin Social Science Center.
    12. Saqib Amin & Ruhamah Yousaf & Muhammad Awais Anwar & Noman Arshed, 2022. "Assessing the impact of diversity and ageing population on health expenditure of United States," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(2), pages 913-929, March.
    13. Bridgman, Benjamin, 2008. "Why are ethnically divided countries poor?," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 1-18, March.

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