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On the Dynamics of Ethnic Fractionalization

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  • 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
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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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  1. Campos, Nauro F & Coricelli, Fabrizio, 2002. "Growth in Transition: What we Know, What we Don't and What we Should," CEPR Discussion Papers 3246, C.E.P.R. Discussion Papers.
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Cited by:

  1. 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.
  2. Kelly LABART, 2010. "What is hidden behind the indicators of ethnolinguistic fragmentation?," Working Papers I07, FERDI.
  3. Javier Gardeazabal, 2011. "Linguistic Polarization and Conflict in the Basque Country," Economics of Security Working Paper Series 56, DIW Berlin, German Institute for Economic Research.
  4. Fletcher, Erin K. & Iyigun, Murat, 2009. "Cultures, Clashes and Peace," IZA Discussion Papers 4116, Institute for the Study of Labor (IZA).
  5. 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.
  6. 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.
  7. Testa, Cecilia, 2012. "Is polarization bad?," European Economic Review, Elsevier, vol. 56(6), pages 1104-1118.
  8. Gören, Erkan, 2014. "How Ethnic Diversity Affects Economic Growth," World Development, Elsevier, vol. 59(C), pages 275-297.
  9. Kelly LABART, 2010. "What is hidden behind the indicators of ethnolinguistic fragmentation?," Working Papers I07, FERDI.
  10. 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.
  11. 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," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. 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.
  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. Rachel M. Gisselquist & Omar McDoom, 2015. "The conceptualization and measurement of ethnic and religious divisions: categorical, temporal, and spatial dimensions with evidence from Mindanao, the Philippines," LSE Research Online Documents on Economics 61993, London School of Economics and Political Science, LSE Library.
  15. Valsecchi, Michele, 2010. "Ethnic diversity, economic performance and civil wars," Working Papers in Economics 433, University of Gothenburg, Department of Economics.
  16. 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.

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