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Fractionalization, Polarization, And Economic Growth: Identifying The Transmission Channels

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  • ELISSAIOS PAPYRAKIS
  • PAK HUNG MO

Abstract

type="main" xml:lang="en"> In this article, we examine empirically both the direct and indirect links between ethnic fragmentation and economic growth. We find that both ethnic fractionalization and polarization are negatively associated with growth if considered in isolation; an effect that is though primarily attributed to their link to other growth-related activities (i.e., investment, conflict, control of corruption, fertility). We study the corresponding transmission channels and calculate their relative importance in explaining a development curse based on ethnic diversity. For both measures of ethnic fragmentation, we find the corruption channel to be the most important one. (JEL C21, O11, Z13)

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  • Elissaios Papyrakis & Pak Hung Mo, 2014. "Fractionalization, Polarization, And Economic Growth: Identifying The Transmission Channels," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1204-1218, July.
    • Handle: RePEc:bla:ecinqu:v:52:y:2014:i:3:p:1204-1218
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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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