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No One True Path: Uncovering the Interplay between Geography, Institutions, and Fractionalization in Economic Development

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Chih Ming Tan

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Abstract

Do institutions “rule” when explaining cross-country divergence? This paper finds that to a large extent they do. However, the role of ethno-linguistic fractionalization cannot be ignored. Sufficiently high-quality institutions are necessary if the negative impact on development from high levels of ethno-linguistic fractionalization is to be mitigated. Interestingly, I find no role for geographic factors; neither those associated with climate nor geographic isolation, in explaining divergence. There is also no evidence to suggest a role for religious fractionalization. Finally, my findings affirm earlier work in the literature that sets apart Sub-Saharan Africa’s development process from the rest of the world.

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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0512.

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Date of creation: 2005
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Handle: RePEc:tuf:tuftec:0512

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Keywords: Regression Trees; Economic Growth; Fundamental Determinants;

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Find related papers by JEL classification:
C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
N15 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Asia including Middle East
N16 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Latin America; Caribbean
N17 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - Africa; Oceania
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General

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Full references

Cited by:
(explanations, 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.)

  1. Gilbert E. Metcalf & Jongsang Park, 2005. "A Comment on the Role of Prices for Excludable Public Goods," Discussion Papers Series, Department of Economics, Tufts University 0524, Department of Economics, Tufts University. [Downloadable!]
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  2. Darlene C. Chisholm & Margaret S. McMillan & George Norman, 2005. "Product Differentiation and Film Programming Choice: Do First-Run Movie Theatres Show the Same Films?," Discussion Papers Series, Department of Economics, Tufts University 0523, Department of Economics, Tufts University. [Downloadable!]
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  3. Alan Martina, 2007. "A Class of Poverty Traps: A Theory and Empirical Tests," ANUCBE School of Economics Working Papers 2007-482, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
  4. Yannis M. Ioannides & Adriaan R. Soetevent, 2005. "Social Networking and Individual Outcomes Beyond the Mean Field Case," Discussion Papers Series, Department of Economics, Tufts University 0521, Department of Economics, Tufts University. [Downloadable!]
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  5. Steven N. Durlauf & Andros KOURTELLOS & Chih Ming Tan, 2007. "Are Any Growth Theories Robust?," Discussion Papers Series, Department of Economics, Tufts University 0703, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
  6. Kourtellos, A. & Tan, C.M. & Stengos, T., 2008. "THRET: Threshold Regression with Endogenous Threshold Variables," Working Papers 0801, University of Guelph, Department of Economics. [Downloadable!]
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  7. Darlene Chisholm & George Norman, 2005. "When to Exit a Product: Evidence from the U.S. Motion-Pictures Exhibition Market," Discussion Papers Series, Department of Economics, Tufts University 0522, Department of Economics, Tufts University. [Downloadable!]
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