Corruption, growth and ethnolinguistic fractionalization: a theoretical model
AbstractThis paper analyzes the existing relationship between ethnolinguistic fractionalization, corruption and the growth rate of a country. We provide a simple theoretical model. We show that a non-linear relationship between fractionalization and corruption exists: corruption is high in homogeneous or very fragmented countries, but low where fractionalization is intermediate. In fact, when ethnic diversity is intermediate, constituencies act as a checkand balance device to limit ethnically-based corruption. Consequently, the relationship between fractionalization and growth rate is also non-linear: growth is high in the�middle range of ethnic diversity, low in homogeneous or very fragmented countries.
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Bibliographic InfoPaper provided by Macerata University, Department of Finance and Economic Sciences in its series Working Papers with number 57-2009.
Date of creation: Dec 2009
Date of revision: Jan 2010
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
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- Kanybek Nur-tegin & Hans J. Czap, 2012. "Corruption: Democracy, Autocracy, and Political Stability," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 42(1), pages 51-66, March.
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