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Ethnic Polarization, Potential Conflict, and Civil Wars

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Author Info
José Garcia Montalvo ()
Marta Reynal-Querol ()
Abstract

This paper analyzes the relationship between ethnic fractionalization, polarization, and conflict. In recent years many authors have found empirical evidence that ethnic fractionalization has a negative effect on growth. One mechanism that can explain this nexus is the effect of ethnic heterogeneity on rent-seeking activities and the increase in potential conflict, which is negative for investment. However the empirical evidence supporting the effect of ethnic fractionalization on the incidence of civil conflicts is very weak. Although ethnic fractionalization may be important for growth, we argue that the channel is not through an increase in potential ethnic conflict. We discuss the appropriateness of indices of polarization to capture conflictive dimensions. We develop a new measure of ethnic heterogeneity that satisfies the basic properties associated with the concept of polarization. The empirical section shows that this index of ethnic polarization is a significant variable in the explanation of the incidence of civil wars. This result is robust to the presence of other indicators of ethnic heterogeneity, other sources of data for the construction of the index, and other data structures.

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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 770.

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Date of creation: Jul 2004
Date of revision: Mar 2005
Handle: RePEc:upf:upfgen:770

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Related research
Keywords: Ethnic diversity; conflict; indices of diversity;

Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
Z12 - Other Special Topics - - Cultural Economics - - - Religion
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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References listed on IDEAS
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  2. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
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  4. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
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  6. Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June. [Downloadable!] (restricted)
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  7. Fearon, James D, 2003. " Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June. [Downloadable!] (restricted)
  8. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November. [Downloadable!] (restricted)
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  10. Keefer, Philip & Knack, Stephen, 2002. " Polarization, Politics and Property Rights: Links between Inequality and Growth," Public Choice, Springer, vol. 111(1-2), pages 127-54, March. [Downloadable!] (restricted)
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  11. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR, CES, MSH, vol. 16(32), pages 127-166, 04. [Downloadable!] (restricted)
  12. Skaperdas, Stergios, 1992. "Cooperation, Conflict, and Power in the Absence of Property Rights," American Economic Review, American Economic Association, vol. 82(4), pages 720-39, September. [Downloadable!] (restricted)
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  14. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
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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. Francesco Caselli & Wilbur John Coleman II, 2006. "On the Theory of Ethnic Conflict," CEP Discussion Papers dp0732, Centre for Economic Performance, LSE. [Downloadable!]
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  2. Papaioannou, Elias & Siourounis, Gregorios, 2008. "Economic and Social Factors Driving the Third Wave of Democratization," CEPR Discussion Papers 6986, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Erica Field & Matthew Levinson & Rohini Pande & Sujata Visaria, 2008. "Segregation, Rent Control, and Riots: The Economics of Religious Conflict in an Indian City," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-174, Boston University - Department of Economics. [Downloadable!]
  4. Klaus Abbink & Silvia Pezzini, 2005. "Determinants of Revolt: Evidence from Survey and Laboratory Data," Discussion Papers 2005-01, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
  5. Klaus Desmet & Ignacio Ortuño-Ortín & Romain Wacziarg, 2009. "The Political Economy of Ethnolinguistic Cleavages," NBER Working Papers 15360, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Klaus Abbink & Jordi Brandts & Benedikt Herrmann & Henrik Orzen, 2009. "Inter-Group Conflict and Intra-Group Punishment in an Experimental Contest Game," Discussion Papers 2009-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
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  7. Djankov, Simeon & Reynal-Querol, Marta, 2008. "Poverty and Civil War: Revisiting the evidence," CEPR Discussion Papers 6980, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Jha, Saumitra, 2008. "Trade, Institutions and Religious Tolerance: Evidence from India," Research Papers 2004, Stanford University, Graduate School of Business. [Downloadable!]
  9. Valerie Smeets & Kathryn Ierulli & Michael Gibbs, 2006. "Mergers of Equals and Unequals," IZA Discussion Papers 2426, Institute for the Study of Labor (IZA). [Downloadable!]
  10. B. Curtis Eaton & Mukesh Eswaran & Robert Oxoby, 2009. "'Us' and 'Them': The Origin of Identity, and its Economic Implications," Working Papers 2009-03, Department of Economics, University of Calgary, revised 01 Jan 2009. [Downloadable!]
  11. Smeets, Valérie & Ierulli, Kathryn & Gibbs, Michael, 2006. "Mergers of Equals & Unequals," Working Papers 06-8, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  12. Yongfu Huang, 2005. "What determines financial development?," Bristol Economics Discussion Papers 05/580, Department of Economics, University of Bristol, UK. [Downloadable!]
  13. Elias Papaioannou & Gregorios Siourounis, 2007. "Initial Factors Behind The Third Wave of Democratization," Working Papers 0002, University of Peloponnese, Department of Economics. [Downloadable!]
  14. Timothy Besley & Hannes Mueller, 2009. "Estimating the Peace Dividend:The Impact of Violence on HousePrices in Northern Ireland," STICERD - Economic Organisation and Public Policy Discussion Papers Series 011, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  15. Dominic Rohner, 2008. "Reputation, Group Structure and Social Tensions," HiCN Working Papers 40, Households in Conflict Network. [Downloadable!]
  16. Héctor Galindo Silva, 2007. "Polarización económica y emergencia de confilctos violentos internos un estudio empírico," DOCUMENTOS DE ECONOMÍA 004449, UNIVERSIDAD JAVERIANA - BOGOTÁ. [Downloadable!]
  17. Montalvo, Jose G. & Reynal-Querol, Marta, 2007. "Ethnic polarization and the duration of civil wars," Policy Research Working Paper Series 4192, The World Bank. [Downloadable!]
  18. Papaioannou, Elias, 2008. "What Drives International Financial Flows? Politics, Institutions and Other Determinants," CEPR Discussion Papers 7010, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  19. Rohner, D., 2006. "Information, Reputation and Ethnic Conflict," Cambridge Working Papers in Economics 0658, Faculty of Economics, University of Cambridge. [Downloadable!]
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