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Diversity of Communities and Economic Development: An Overview

  • Ranis, Gustav
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    This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions are important determinants of adverse development outcomes. The role of decentralization, democracy and markets as potential remedies are discussed. The paper then presents a number of preliminary hypotheses on the relationship between diversity and instability in order to stimulate future research.

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    Paper provided by JICA Research Institute in its series Working Papers with number 6.

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    Date of creation: 01 Mar 2010
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    Handle: RePEc:jic:wpaper:6
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    1. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
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    4. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
    5. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
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    7. Paul Collier & Jan Willem Gunning, 1998. "Explaining African economic performance," Economics Series Working Papers WPS/1997-02.2, University of Oxford, Department of Economics.
    8. Brancati, Dawn, 2006. "Decentralization: Fueling the Fire or Dampening the Flames of Ethnic Conflict and Secessionism?," International Organization, Cambridge University Press, vol. 60(03), pages 651-685, July.
    9. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
    10. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
    11. Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993. "Good policy or good luck?: Country growth performance and temporary shocks," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 459-483, December.
    12. Robert H. Bates, 2006. "Institutions and Development," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(1), pages 10-61, April.
    13. Mwangi S. Kimenyi, 2006. "Ethnicity, Governance and the Provision of Public Goods," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(1), pages 62-99, April.
    14. Paul Collier, 1998. "The political economy of ethnicity," Economics Series Working Papers WPS/1998-08, University of Oxford, Department of Economics.
    15. Paul Collier, 1998. "The political economy of ethnicity," CSAE Working Paper Series 1998-08, Centre for the Study of African Economies, University of Oxford.
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