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Decomposition of ethnic heterogeneity on growth

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  • Yamamura, Eiji

Abstract

Ethnic heterogeneity influences economic growth through various channels such as efficiency improvement, capital accumulation, and technological progress. However, it is open to discussion exactly how ethnic heterogeneity affects these channels. Hence, this paper attempts to examine the effects of heterogeneity on economic growth using data envelopment analysis. The empirical results of the estimations show that heterogeneity has a negative effect on efficiency improvements. However, heterogeneity has no effect on technological progress and capital accumulation. This implies that ethnic heterogeneity hinders positive externalities such as information spillover, which hampers economic growth.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36352.

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Date of creation: 28 Jan 2012
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Handle: RePEc:pra:mprapa:36352

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Keywords: Ethnic fractionalization; Ethnic polarization; Efficiency improvement; Capital accumulation;

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