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On the Dynamics of Ethnic Fractionalization

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Author Info
Nauro F. Campos () (Brunel University, CEPR, WDI and IZA)
Vitaliy S. Kuzeyev () (Ak-Bidai Ltd.)

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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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Publisher 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
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Handle: RePEc:iza:izadps:dp2822

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

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Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
Z12 - Other Special Topics - - Cultural Economics - - - Religion
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
H1 - Public Economics - - Structure and Scope of Government

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References listed on IDEAS
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