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Economic Openess, Disciplined Government and Ethnic Peace

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  • Nava Ravi Kumaran
  • Tilak Abeysinghe

Abstract

Many studies have examined the determinants of ethnic conflicts in multi-ethnic developing countries and report a myriad of contributory factors. It is natural to observe many correlates because ethnic wars tend to gain their own momentum and proceed for variety of reasons that are not directly related to the initial causes. Some intervention is necessary to end an ethnic war. The objective of this exercise is to draw attention to conditions necessary to sustain ethnic peace. Good governance and high and shared growth often top the list of conditions necessary to achieve ethnic peace. How to get good governance to developing countries is the key question of interest. To long for an enlightened leader to emerge and set everything right is utopian. In this exercise we argue that openess to foreign trade and investment is a more assured condition to achieve good governance and high growth. Openness acts as a disciplining force on government regardless of whether they are democratic or authoritarian. A theoretical framework and empirical evidence are presented to support the hypothesis.

Suggested Citation

  • Nava Ravi Kumaran & Tilak Abeysinghe, 2008. "Economic Openess, Disciplined Government and Ethnic Peace," Governance Working Papers 22025, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:govern:22025
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    References listed on IDEAS

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    Cited by:

    1. Navaratnam Ravinthirakumaran, 2014. "Applicability of Openness-led Growth Hypothesis in Sri Lanka," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(2), pages 241-263, September.

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    More about this item

    Keywords

    openness; disciplined government; quality of governance; Growth; ethnic; conflict; feedback loop;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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