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Social Fractionalization, Political Instability, and the Size of Government

Author

Listed:
  • Anthony Annett

    (International Monetary Fund)

Abstract

This paper explores the relationship between the degree of division or fractionalization of a country's population (along ethnolinguistic and religious dimensions) and both political instability and government consumption, using a neoclassical growth model. The principal idea is that greater fractionalization, proxying for the degree of conflict in society, leads to political instability, which in turn leads to higher government consumption aimed at placating the opposition. There is also a feedback mechanism whereby the higher consumption leads to less instability as government consumption reduces the risk of losing office. Empirical evidence based on panel estimation supports this hypothesis. Copyright 2002, International Monetary Fund

Suggested Citation

  • Anthony Annett, 2001. "Social Fractionalization, Political Instability, and the Size of Government," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 1-7.
  • Handle: RePEc:pal:imfstp:v:48:y:2002:i:3:p:7
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    Citations

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    Cited by:

    1. Robinson, Amanda Lea, 2016. "Internal Borders: Ethnic-Based Market Segmentation in Malawi," World Development, Elsevier, vol. 87(C), pages 371-384.
    2. Victor GINSBURGH & Shlomo WEBER, 2016. "Linguistic distances and ethnolinguistic fractionalization and disenfranchisement indices," CORE Discussion Papers RP 2855, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Rougier, Eric, 2016. "“Fire in Cairo”: Authoritarian–Redistributive Social Contracts, Structural Change, and the Arab Spring," World Development, Elsevier, vol. 78(C), pages 148-171.
    4. Doucouliagos, Chris & Hennessy, Jack & Mallick, Debdulal, 2019. "Health Aid, Governance and Infant Mortality," IZA Discussion Papers 12166, Institute of Labor Economics (IZA).
    5. Anoop Singh, 2006. "Macroeconomic Volatility; The Policy Lessons from Latin America," IMF Working Papers 06/166, International Monetary Fund.
    6. Jong-A-Pin, Richard, 2009. "On the measurement of political instability and its impact on economic growth," European Journal of Political Economy, Elsevier, vol. 25(1), pages 15-29, March.
    7. Ginsburgh, Victor & Weber, Shlomo, 2018. "The Economics of Language," CEPR Discussion Papers 13002, C.E.P.R. Discussion Papers.
    8. Rodriguez-Pose, Andres & Stermsek, Marko, 2014. "The Economics of Secession – Analysing the economic impact of the collapse of the former Yugoslavia," CEPR Discussion Papers 10134, C.E.P.R. Discussion Papers.
    9. Alena Kimakova, 2009. "Government size and openness revisited: the case of financial globalization," Kyklos, Wiley Blackwell, vol. 62(3), pages 394-406, August.
    10. Mertzanis, Charilaos, 2016. "The absorption of financial services in an Islamic environment," Journal of Economic Behavior & Organization, Elsevier, vol. 132(S), pages 216-236.
    11. Peter T. Leeson & Claudia R. Williamson, 2011. "Can’t We All Just Get Along? Fractionalization, Institutions and Economic Consequences," Chapters,in: The Handbook on the Political Economy of War, chapter 4 Edward Elgar Publishing.
    12. Urbain Thierry Yogo, 2015. "Ethnic Diversity and the Efficiency of Public Spending in Developing Countries," Working Papers halshs-01161599, HAL.
    13. Philipp Kolo, 2016. "A dissimilarity-adjusted index of ethnic diversity: Measurement and implications for findings on conflict, growth and trade," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 195, Courant Research Centre PEG.
    14. repec:bla:kyklos:v:71:y:2018:i:4:p:581-612 is not listed on IDEAS
    15. Gören, Erkan, 2014. "How Ethnic Diversity Affects Economic Growth," World Development, Elsevier, vol. 59(C), pages 275-297.
    16. Sarantis Kalyvitis & Irene Vlachaki, 2010. "Democratic Aid And The Democratization Of Recipients," Contemporary Economic Policy, Western Economic Association International, vol. 28(2), pages 188-218, April.
    17. repec:kap:iecepo:v:16:y:2019:i:2:d:10.1007_s10368-017-0393-3 is not listed on IDEAS
    18. Arusha Cooray, 2014. "Ethnic or Political Fractionalisation? A District Level Analysis of the Provision of Public Goods in Sri Lanka," Growth and Change, Wiley Blackwell, vol. 45(4), pages 640-666, December.
    19. repec:dgr:rugsom:06c05 is not listed on IDEAS
    20. repec:eee:riibaf:v:41:y:2017:i:c:p:79-89 is not listed on IDEAS
    21. Bridgman, Benjamin, 2008. "Why are ethnically divided countries poor?," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 1-18, March.
    22. Philip Gunby & Yinghua Jin, 2016. "Determinants of Chinese Government Size: An Extreme Bounds Analysis," Working Papers in Economics 16/25, University of Canterbury, Department of Economics and Finance.
    23. Robert M. Marsh, 2014. "Getting Ahead and Falling Behind: A Sociological Elaboration of Sen's Theory of Human Development," Social Science Quarterly, Southwestern Social Science Association, vol. 95(4), pages 1001-1021, December.
    24. Thomas P. Tangerås & Nils-Petter Lagerlöf, 2009. "Ethnic Diversity, Civil War and Redistribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 1-27, March.

    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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