IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Ethnic conflict, power dynamics and growth

  • Pierre PECHER

    ()

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Registered author(s):

    I construct a successive generations model of appropriative competition between ethnicities where de facto power puts an upper-bound on the consumption of each clan. My aim is to derive the implications of the structure of the ethnic and political divisions in terms of economic prosperity. I expose a mechanism reducing negative externalities in consumption implying that long-run economic growth is larger when influence is concentrated rather than dispersed. I find that competition intensity sometimes is beneficial if it is above a thresh-old or if small groups initially have a large influence. I provide an argument in favour of the Ethno-Linguistic Fractionalization index over a polarization index when considering the impact of diversity on growth. This paper fills a gap in the literature by allowing for the possibility of more than two groups of different sizes in a dynamical setup and by being consistent with the evidence of proportionality between ethnic and political share sin sub-Saharan Africa.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://sites.uclouvain.be/econ/DP/IRES/2014008.pdf
    Download Restriction: no

    Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2014008.

    as
    in new window

    Length: 31
    Date of creation: 21 Dec 2013
    Date of revision:
    Handle: RePEc:ctl:louvir:2014008
    Contact details of provider: Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)
    Fax: +32 10473945
    Web page: http://www.uclouvain.be/ires
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
    2. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    3. Nunn, Nathan, 2007. "Historical legacies: A model linking Africa's past to its current underdevelopment," Journal of Development Economics, Elsevier, vol. 83(1), pages 157-175, May.
    4. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    5. Timothy Besley & Torsten Persson, 2009. "State Capacity, Conflict and Development," STICERD - Economic Organisation and Public Policy Discussion Papers Series 010, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    6. Francesco Caselli & Wilbur John Coleman II, 2006. "On the Theory of Ethnic Conflict," CEP Discussion Papers dp0732, Centre for Economic Performance, LSE.
    7. DE LA CROIX, David & DOTTORI, Davide, 2007. "Easter Island’s collapse: A tale of a population race," CORE Discussion Papers 2007001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Joan Esteban & Laura Mayoral & Debraj Ray, 2010. "Ethnicity And Conflict: An Empirical Study," UFAE and IAE Working Papers 840.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 12 Dec 2011.
    9. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-70, November.
    10. Quamrul Ashraf & Oded Galor, 2011. "Cultural Diversity, Geographical Isolation, and the Origin of the Wealth of Nations," Working Papers 2011-16, Brown University, Department of Economics.
    11. Oguzhan Dincer & Christopher Ellis, 2005. "Predation, Protection, and Accumulation: Endogenous Property Rights in an Overlapping Generations Growth Model," International Tax and Public Finance, Springer, vol. 12(4), pages 435-455, August.
    12. Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-77, November.
    13. Jean-Marie Baland & Karl-Ove Moene & James A. Robinson, 2009. "Governance and Development," Working Papers 1007, University of Namur, Department of Economics.
    14. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer, vol. 7(2), pages 283-290.
    15. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
    16. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 127-166, 04.
    17. Joan-Maria Esteban & Debraj Ray, 1991. "On the Measurement of Polarization," Boston University - Institute for Economic Development 18, Boston University, Institute for Economic Development.
    18. Daron Acemoglu & James A. Robinson, 2006. "Persistence of Power, Elites and Institutions," NBER Working Papers 12108, National Bureau of Economic Research, Inc.
    19. Sandholm, William H., 2001. "Potential Games with Continuous Player Sets," Journal of Economic Theory, Elsevier, vol. 97(1), pages 81-108, March.
    20. Lucas, Robert E, Jr, 1990. "Supply-Side Economics: An Analytical Review," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 293-316, April.
    21. Joan Esteban & Debraj Ray, 2008. "On the Salience of Ethnic Conflict," American Economic Review, American Economic Association, vol. 98(5), pages 2185-2202, December.
    22. Fearon, James D, 2003. " Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June.
    23. Francesco Caselli & Andrea Tesei, 2011. "Resource Windfalls, Political Regimes, and Political Stability," CEP Discussion Papers dp1091, Centre for Economic Performance, LSE.
    24. Philip R. Lane & Aaron Tornell, 1999. "The Voracity Effect," American Economic Review, American Economic Association, vol. 89(1), pages 22-46, March.
    25. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2004. "Alfred Marshall Lecture: Kleptocracy and Divide-and-Rule: A Model of Personal Rule," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 162-192, 04/05.
    26. Strulik, Holger, 2008. "Voracity and Growth Reconsidered," Hannover Economic Papers (HEP) dp-401, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    27. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
    28. Bellettini, Giorgio & Berti Ceroni, Carlotta, 2000. "Financial Liberalization, Property Rights, and Growth in an Overlapping-Generations Model," Review of International Economics, Wiley Blackwell, vol. 8(2), pages 348-59, May.
    29. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2009. "Political Selection and Persistence of Bad Governments," NBER Working Papers 15230, National Bureau of Economic Research, Inc.
    30. Thomas P. Tanger�s & Nils-Petter Lagerlöf, 2009. "Ethnic Diversity, Civil War and Redistribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 1-27, 03.
    31. Esteban, J. & Ray, D., 1999. "Collective Action and Group Size Paradox," Papers 23, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
    32. Grossman, Herschel I. & Mendoza, Juan, 2003. "Scarcity and appropriative competition," European Journal of Political Economy, Elsevier, vol. 19(4), pages 747-758, November.
    33. Benhabib, Jess & Rustichini, Aldo, 1991. "Social Conflict, Growth and Inequality," Working Papers 91-46, C.V. Starr Center for Applied Economics, New York University.
    34. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
    35. repec:ebl:ecbull:v:28:y:2008:i:10:p:a0 is not listed on IDEAS
    36. Daron Acemoglu & James A. Robinson, 2006. "De Facto Political Power and Institutional Persistence," American Economic Review, American Economic Association, vol. 96(2), pages 325-330, May.
    37. J. Atsu Amegashie, 2008. "Autocratic rule in ethnically-diverse societies," Economics Bulletin, AccessEcon, vol. 28(10), pages A0.
    38. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
    39. Amegashie, J. Atsu, 2008. "Autocratic rule in ethnically-diverse societies," MPRA Paper 8933, University Library of Munich, Germany.
    40. Daron Acemoglu & James Robinson, 2010. "The Role of Institutions in Growth and Development," Review of Economics and Institutions, Università di Perugia, vol. 1(2).
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ctl:louvir:2014008. 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: (Anne DAVISTER-LOGIST)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.