Advanced Search
MyIDEAS: Login to save this paper or follow this series

Corruption, Growth and Ethnic Fractionalization: a Theoretical Model

Contents:

Author Info

  • Roy Cerqueti

    ()
    (University of Macerata)

  • Raffaella Coppier

    ()
    (University of Macerata)

  • Gustavo Piga

    ()
    (Faculty of Economics, University of Rome "Tor Vergata")

Abstract

This paper analyzes the existing relationship between ethnic fractionalization, corruption and the growth rate of a country. We provide a simple theoretical model. We show that a nonlinear 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 check and 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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://www.ceistorvergata.it/repec/rpaper/RP216.pdf
File Function: Main text
Download Restriction: no

Bibliographic Info

Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 216.

as in new window
Length: 34 pages
Date of creation: 08 Nov 2011
Date of revision: 08 Nov 2011
Handle: RePEc:rtv:ceisrp:216

Contact details of provider:
Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
Phone: +390672595601
Fax: +39062020687
Email:
Web page: http://www.ceistorvergata.it
More information through EDIRC

Order Information:
Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
Email:
Web: http://www.ceistorvergata.it

Related research

Keywords: corruption; ethnic fractionalization; monitoring cost; economic growth.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1203-50, November.
  2. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
  3. Hongyi Li & Lixin Colin Xu & Heng-fu Zou, 2000. "Corruption, Income Distribution, and Growth," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 472, China Economics and Management Academy, Central University of Finance and Economics.
  4. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 16(32), pages 127-166, 04.
  5. Bellini, Fabio & Rosazza Gianin, Emanuela, 2008. "On Haezendonck risk measures," Journal of Banking & Finance, Elsevier, vol. 32(6), pages 986-994, June.
  6. Benchekroun, Hassan & Withagen, Cees, 2011. "The optimal depletion of exhaustible resources: A complete characterization," Resource and Energy Economics, Elsevier, Elsevier, vol. 33(3), pages 612-636, September.
  7. Drugov, Mikhail, 2010. "Competition in bureaucracy and corruption," Journal of Development Economics, Elsevier, vol. 92(2), pages 107-114, July.
  8. Acemoglu, D. & Verdier, T., 1996. "Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach," DELTA Working Papers 96-12, DELTA (Ecole normale supérieure).
  9. BOUCEKKINE, Raouf & MARTINEZ, Blanca & RUIZ-TAMARIT, Jose R., 2007. "Global dynamics and imbalance effects in the Lucas-Uzawa model: further results," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2007025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Goovaerts, Marc J. & Kaas, Rob & Dhaene, Jan & Tang, Qihe, 2004. "Some new classes of consistent risk measures," Insurance: Mathematics and Economics, Elsevier, vol. 34(3), pages 505-516, June.
  11. Thierry Verdier & Daron Acemoglu, 2000. "The Choice between Market Failures and Corruption," American Economic Review, American Economic Association, vol. 90(1), pages 194-211, March.
  12. Sambit Bhattacharyya & Roland Hodler, 2008. "Natural Resources, Democracy and Corruption," Department of Economics - Working Papers Series, The University of Melbourne 1047, The University of Melbourne.
  13. Pedro C. Vicente, 2007. "Does Oil Corrupt? Evidence from a Natural Experiment in West Africa," Economics Series Working Papers 317, University of Oxford, Department of Economics.
  14. Baqir, Reza & Easterly, William & Alesina, Alberto, 1999. "Public Goods and Ethnic Divisions," Scholarly Articles 4551797, Harvard University Department of Economics.
  15. Lessmann, Christian & Markwardt, Gunther, 2008. "One size fits all? Decentralization, corruption, and the monitoring of bureaucrats," Dresden Discussion Paper Series in Economics 14/08, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  16. Giacomo Corneo, 2010. "Nationalism, cognitive ability, and interpersonal relations," International Review of Economics, Springer, Springer, vol. 57(2), pages 119-141, June.
  17. Rose-Ackerman,Susan, 1999. "Corruption and Government," Cambridge Books, Cambridge University Press, number 9780521632935, 9.
  18. Schmidt, Klaus D., 1989. "Positive homogeneity and multiplicativity of premium principles on positive risks," Insurance: Mathematics and Economics, Elsevier, vol. 8(4), pages 315-319, December.
  19. K Blackburn & N Bose & M E Haque, 2002. "Endogenous Corruption in Economic Development," Centre for Growth and Business Cycle Research Discussion Paper Series 22, Economics, The Univeristy of Manchester.
  20. Svensson, Jakob, 2000. "Foreign aid and rent-seeking," Journal of International Economics, Elsevier, vol. 51(2), pages 437-461, August.
  21. Stephen Dobson & Carlyn Ramlogan, 2009. "Is there a trade-off between income inequality and corruption? Evidence from Latin America," Working Papers, Nottingham Trent University, Nottingham Business School, Economics Division 2009/4, Nottingham Trent University, Nottingham Business School, Economics Division.
  22. Alberto Alesina & Enrico Spolaore, 1995. "On the Number and Size of Nations," NBER Working Papers 5050, National Bureau of Economic Research, Inc.
  23. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
  24. Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2002. "Fractionalization," Harvard Institute of Economic Research Working Papers 1959, Harvard - Institute of Economic Research.
    • Alesina, Alberto & Devleeschauwer, Arnaud & Wacziarg, Romain & Kurlat, Sergio & Easterly, William, 2003. "Fractionalization," Scholarly Articles 4553003, Harvard University Department of Economics.
    • Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2003. "Fractionalization," NBER Working Papers 9411, National Bureau of Economic Research, Inc.
    • Wacziarg, Romain & Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio, 2002. "Fractionalization," Research Papers 1744, Stanford University, Graduate School of Business.
  25. BOUCEKKINE, Raouf & MARTINEZ, Blanca & RUIZ-TAMARIT, José Ramon, . "Note on global dynamics and imbalance effects in the Lucas-Uzawa model," CORE Discussion Papers RP -2091, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  26. Evrensel, Ayse Y., 2010. "Corruption, growth, and growth volatility," International Review of Economics & Finance, Elsevier, Elsevier, vol. 19(3), pages 501-514, June.
  27. BOUCEKKINE, Raouf & RUIZ-TAMARIT, Ramon, 2004. "Special functions for the study of economic dynamics: The case of the Lucas-Uzawa model," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2004084, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  28. Rose-Ackerman,Susan, 1999. "Corruption and Government," Cambridge Books, Cambridge University Press, number 9780521659123, 9.
  29. Haezendonck, J. & Goovaerts, M., 1982. "A new premium calculation principle based on Orlicz norms," Insurance: Mathematics and Economics, Elsevier, vol. 1(1), pages 41-53, January.
  30. Jacob Wanjala Musila & Simon Pierre Sigué, 2010. "Corruption and International Trade: An Empirical Investigation of African Countries," The World Economy, Wiley Blackwell, vol. 33(1), pages 129-146, 01.
  31. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 681-712, August.
  32. Thomas P. Tanger�s & Nils-Petter Lagerlöf, 2009. "Ethnic Diversity, Civil War and Redistribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 1-27, 03.
  33. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
  34. Javier Ortega & Thomas P. Tangerås, 2008. "Unilingual Versus Bilingual Education: A Political Economy Analysis," Journal of the European Economic Association, MIT Press, MIT Press, vol. 6(5), pages 1078-1108, 09.
  35. Seung Yoo, 2008. "Petty corruption," Economic Theory, Springer, Springer, vol. 37(2), pages 267-280, November.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:rtv:ceisrp:216. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Barbara Piazzi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.