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The roots of ethnic diversity

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  • Pelle Ahlerup

  • Ola Olsson

Abstract

The level of ethnic diversity is believed to have significant consequences for economic and political development within countries. In this article, we provide a theoretical and empirical analysis of the determinants of ethnic diversity in the world. We introduce a model of cultural and ge- netic drift where new ethnic groups endogenously emerge among periph- eral populations as a response to an insufficient supply of public goods. In line with our model, we find that the duration of human settlements has a strong positive association with ethnic diversity. Ethnic diversity decreases with the length of modern state experience and with distance from the equator. Both "primordial" and "constructivist" hypotheses of ethnic fractionalization thus receive some support by our analysis.
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Suggested Citation

  • Pelle Ahlerup & Ola Olsson, 2012. "The roots of ethnic diversity," Journal of Economic Growth, Springer, vol. 17(2), pages 71-102, June.
    • Handle: RePEc:kap:jecgro:v:17:y:2012:i:2:p:71-102
    DOI: 10.1007/s10887-011-9075-0
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    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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