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The Roots of Ethnic Diversity

  • Ahlerup, Pelle

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Olsson, Ola

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

The level of ethnic diversity is believed to have significant consequences for economic and political development within countries. In this article, we provide a theoretical and empirical analysis of the determinants of ethnic diversity in the world. We introduce a model of cultural and ge- netic drift where new ethnic groups endogenously emerge among periph- eral populations as a response to an insufficient supply of public goods. In line with our model, we find that the duration of human settlements has a strong positive association with ethnic diversity. Ethnic diversity decreases with the length of modern state experience and with distance from the equator. Both "primordial" and "constructivist" hypotheses of ethnic fractionalization thus receive some support by our analysis.

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File URL: http://hdl.handle.net/2077/8482
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 281.

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Length: 49 pages
Date of creation: 14 Dec 2007
Date of revision:
Handle: RePEc:hhs:gunwpe:0281
Contact details of provider: Postal:
Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden

Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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  2. Ashraf, Quamrul & Galor, Oded, 2012. "The "Out of Africa" Hypothesis, Human Genetic Diversity, and Comparative Economic Development," IZA Discussion Papers 6330, Institute for the Study of Labor (IZA).
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  7. Quamrul Ashraf & Oded Galor, 2010. "Dynamics and Stagnation in the Malthusian Epoch," Department of Economics Working Papers 2010-01, Department of Economics, Williams College, revised May 2011.
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  9. Collier, Paul & Hoeffler, Anke, 2000. "Greed and grievance in civil war," Policy Research Working Paper Series 2355, The World Bank.
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  11. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," NBER Working Papers 6849, National Bureau of Economic Research, Inc.
  12. Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio & Wacziarg, Romain, 2003. "Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June.
  13. Stelios Michalopoulos, 2009. "The Origins of Ethnolinguistic Diversity," Carlo Alberto Notebooks 110, Collegio Carlo Alberto.
  14. Fletcher, Erin K. & Iyigun, Murat, 2009. "Cultures, Clashes and Peace," IZA Discussion Papers 4116, Institute for the Study of Labor (IZA).
  15. Quamrul Ashraf & Oded Galor, 2011. "Cultural Diversity, Geographical Isolation, and the Origin of the Wealth of Nations," NBER Working Papers 17640, National Bureau of Economic Research, Inc.
  16. Ahlerup, Pelle, 2009. "The Causal Effects of Ethnic Diversity: An Instrumental Variables Approach," Working Papers in Economics 386, University of Gothenburg, Department of Economics.
  17. Areendam Chanda & Louis Putterman, 2007. "Early Starts, Reversals and Catch-up in the Process of Economic Development," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(2), pages 387-413, 06.
  18. Olsson, Ola, 2009. "On the democratic legacy of colonialism," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 534-551, December.
  19. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
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  21. Mwangi S. Kimenyi, 2003. "Ethnicity, Governance and the Provision of Public Goods," Working papers 2003-49, University of Connecticut, Department of Economics.
  22. 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.
  23. Olsson, Ola & Hibbs Jr., Douglas A., 2000. "Biogeography and Long-Run Economic Development," Working Papers in Economics 26, University of Gothenburg, Department of Economics, revised 11 Aug 2000.
  24. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
  25. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
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  27. Alesina, Alberto & La Ferrara, Eliana, 2005. "Ethnic Diversity and Economic Performance," Scholarly Articles 4553005, Harvard University Department of Economics.
  28. Jean-Louis ARCAND & Patrick GUILLAUMONT & Sylviane GUILLAUMONT JEANNENEY, 1999. "How To Make A Tragedy: On The Alleged Effect Of Ethnicity On Growth," Working Papers 199903, CERDI.
  29. John Luke Gallup & Jeffrey D. Sachs & Andrew D. Mellinger, 1998. "Geography and Economic Development," Harvard Institute of Economic Research Working Papers 1856, Harvard - Institute of Economic Research.
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