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On the Dynamics of Ethnic Fractionalization

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Listed author(s):
  • Campos, Nauro F
  • Kuzeyev, Vitaliy

Abstract

Does fractionalization change over (short periods of) time? If so, are there any substantial implications for economic performance? To answer such questions, we construct a new panel data set with measures of fractionalization for 26 former communist countries covering the period from 1989 to 2002. Our fractionalization measures show that transition economies became more ethnically homogenous over such a short period of time, although the same did not happen in terms of linguistic and religious fractionalization. In line with the most recent literature, there seems to be no effect of (exogenous) fractionalization on macroeconomic performance (that is, on per capita GDP growth). However, we find that dynamic ethnic fractionalization is negatively related to growth (although this is still not the case for linguistic and religious fractionalization). These findings are robust to different specifications, polarization measures, instrument sets as well as to a composite index of ethnic-linguistic-religious fractionalization.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6360.

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Date of creation: Jun 2007
Handle: RePEc:cpr:ceprdp:6360
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Keywords: ethnic fractionalization; growth; polarization; transition economies;

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Find related papers by JEL classification:
  • H1 - Public Economics - - Structure and Scope of Government
  • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
  • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
  • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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Cited by:

  1. Javier Gardeazabal, 2011. "Linguistic polarization and conflict in the Basque Country," Public Choice, Springer, vol. 149(3), pages 405-425, December.
  2. Testa, Cecilia, 2012. "Is polarization bad?," European Economic Review, Elsevier, vol. 56(6), pages 1104-1118.
  3. Fletcher, Erin K. & Iyigun, Murat, 2009. "Cultures, Clashes and Peace," IZA Discussion Papers 4116, Institute for the Study of Labor (IZA).
  4. AfDB AfDB, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 2225, African Development Bank.
  5. Beugelsdijk, Sjoerd & Slangen, Arjen & Maseland, Robbert & Onrust, Marjolijn, 2014. "The impact of home–host cultural distance on foreign affiliate sales: The moderating role of cultural variation within host countries," Journal of Business Research, Elsevier, vol. 67(8), pages 1638-1646.
  6. Gardeazabal, Javier, 2011. "Linguistic Polarization and Conflict in the Basque Country," DFAEII Working Papers 2011-02, University of the Basque Country - Department of Foundations of Economic Analysis II.
  7. AfDB AfDB, 2007. "Working Paper 92 - Education Expenditures and School Enrolment in Africa: Illustrations from Nigeria and Other SANE Countries," Working Paper Series 2305, African Development Bank.
  8. da Rocha, Bruno T., 2015. "Let the markets begin: The interplay between free prices and privatisation in early transition," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 350-370.
  9. Campos, Nauro F & Kuzeyev, Vitaliy & Saleh, Ahmad, 2009. "Dynamic Ethnic Fractionalization and Economic Growth in the Transition Economies from 1989 to 2007," CEPR Discussion Papers 7586, C.E.P.R. Discussion Papers.
  10. Kelly LABART, 2010. "What is hidden behind the indicators of ethnolinguistic fragmentation?," Working Papers I07, FERDI.
  11. Valsecchi, Michele, 2010. "Ethnic diversity, economic performance and civil wars," Working Papers in Economics 433, University of Gothenburg, Department of Economics.
  12. Omar Shahabudin McDoom & Rachel M. Gisselquist, 2016. "The Measurement of Ethnic and Religious Divisions: Spatial, Temporal, and Categorical Dimensions with Evidence from Mindanao, the Philippines," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 863-891, November.
  13. Olsson, Ola & Valsecchi, Michele, 2010. "Quantifying Ethnic Cleansing: An Application to Darfur," Working Papers in Economics 479, University of Gothenburg, Department of Economics.
  14. Gören, Erkan, 2014. "How Ethnic Diversity Affects Economic Growth," World Development, Elsevier, vol. 59(C), pages 275-297.
  15. McDoom Omar & Gisselquist Rachel M., 2015. "The Conceptualization and Measurement of Ethnic and Religious Divisions: Categorical, Temporal, and Spatial Dimensions with Evidence from Mindanao, the Philippines," WIDER Working Paper Series 022, World Institute for Development Economic Research (UNU-WIDER).
  16. Kelly LABART, 2010. "What is hidden behind the indicators of ethnolinguistic fragmentation?," Working Papers I07, FERDI.
  17. Philipp Kolo, 2011. "Questioning Ethnic Fragmentation's Exogeneity - Drivers of Changing Ethnic Boundaries," Ibero America Institute for Econ. Research (IAI) Discussion Papers 210, Ibero-America Institute for Economic Research.
  18. Rachel M. Gisselquist & Omar McDoom, 2015. "The conceptualization and measurement ofethnic and religious divisions:categorical, temporal, and spatial dimensions with evidencefrom Mindanao, the Philippines," LSE Research Online Documents on Economics 61993, London School of Economics and Political Science, LSE Library.

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