Economic growth and ethnic violence: An empirical investigation of Hinduâ€”Muslim riots in India
Most studies of Hinduâ€”Muslim riots in India have tended to emphasize the effects of social, cultural, or political factors on the occurrence of ethnic violence. In this article, the authors focus on the relationship between economic conditions and riots. Specifically, this article examines the effect of economic growth on the outbreak of Hinduâ€”Muslim riots in 15 Indian states between 1982 and 1995. Controlling for other factors, the authors find that just a 1% increase in the growth rate decreases the expected number of riots by over 5%. While short-term changes in growth influence the occurrence of riots, this study finds no evidence of a relationship between the levels of wealth in a state and the incidence of ethnic riots. Moreover, by including state fixed effects, the authors determine that the negative relationship found between economic growth and riots is driven primarily by the relationship between growth and riots within a state over time rather than across states. These results are robust to controlling for a number of other factors such as economic inequality, demographic variables, political competition, temporal lags, spillover effects from adjacent states, and year effects. Finally, to address potential concerns that economic growth could be a consequence rather than a cause of violence or that other unobserved factors could confound the relationship between economic growth and the occurrence of Hinduâ€”Muslim riots, the authors also employ instrumental variables (IV) estimation, using percentage change in rainfall as an instrument for growth. The results with IV estimation are similar to the results with non-IV estimation in terms of sign and significance, indicating that the negative effect of economic growth on riots is not due to reverse causality or omitted variables bias.
When requesting a correction, please mention this item's handle: RePEc:sae:joupea:v:47:y:2010:i:5:p:589-600. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.