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On the Dynamics of Ethnic Fractionalization

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Author Info

  • Campos, Nauro F

    ()
    (Brunel University)

  • Kuzeyev, Vitaliy S.

    ()
    (affiliation not available)

Abstract

Does fractionalization change over time? If so, are there any substantial implications for economic performance? To answer such questions, we construct a new panel data set with fractionalization measures 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 little 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2822.

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Length: 45 pages
Date of creation: Jun 2007
Date of revision:
Publication status: published in: American Journal of Political Science, 2007, 51(3), 620-639
Handle: RePEc:iza:izadps:dp2822

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

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Citations

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Cited by:
  1. Beugelsdijk, Sjoerd & Slangen, Arjen & Maseland, Robbert & Onrust, Marjolijn, 2014. "The impact of home–host cultural distance on foreign affiliate sales: The moderating role of cultural variation within host countries," Journal of Business Research, Elsevier, vol. 67(8), pages 1638-1646.
  2. Philipp Kolo, 2011. "Questioning Ethnic Fragmentation's Exogeneity - Drivers of Changing Ethnic Boundaries," Ibero America Institute for Econ. Research (IAI) Discussion Papers 210, Ibero-America Institute for Economic Research.
  3. Javier Gardeazabal, 2011. "Linguistic Polarization and Conflict in the Basque Country," Economics of Security Working Paper Series 56, DIW Berlin, German Institute for Economic Research.
  4. Testa, Cecilia, 2012. "Is polarization bad?," European Economic Review, Elsevier, vol. 56(6), pages 1104-1118.
  5. Olsson, Ola & Valsecchi, Michele, 2010. "Quantifying Ethnic Cleansing: An Application to Darfur," Working Papers in Economics 479, University of Gothenburg, Department of Economics.
  6. Kelly LABART, 2010. "What is hidden behind the indicators of ethnolinguistic fragmentation?," Working Papers I07, FERDI.
  7. Kelly LABART, 2010. "What is hidden behind the indicators of ethnolinguistic fragmentation?," Working Papers I07, FERDI.
  8. Valsecchi, Michele, 2010. "Ethnic diversity, economic performance and civil wars," Working Papers in Economics 433, University of Gothenburg, Department of Economics.

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