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Decomposition of Ethnic Heterogeneity on Growth

  • Eiji Yamamura

    ()

    (Department of Economics, Seinan Gakuin University, 6-2-92 Sawaraku Nishijin, Fukuoka 814–8511, Japan.)

  • Inyong Shin

    (Asia University, 5-24-10 Sakai Musashino-shi, Tokyo 180-8629, Japan.)

Ethnic heterogeneity influences economic growth through various channels such as efficiency improvement and capital accumulation. However, it is not settled exactly as to how ethnic heterogeneity affects these channels. Hence, this paper attempts to examine the effects of heterogeneity on economic growth using data envelopment analysis. The empirical results of the estimations show that heterogeneity has a negative effect on efficiency improvements. However, heterogeneity has no effect on capital accumulation. This implies that ethnic heterogeneity hinders positive externalities such as information spillovers, which hampers economic growth.

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Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 55 (2013)
Issue (Month): 1 (March)
Pages: 59-75

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Handle: RePEc:pal:compes:v:55:y:2013:i:1:p:59-75
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