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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. Timothy Besley & Masayuki Kudamatsu, 2007. "Making autocracy work," LSE Research Online Documents on Economics 3764, London School of Economics and Political Science, LSE Library.
    2. Mwangi S. Kimenyi, 2003. "Ethnicity, Governance and the Provision of Public Goods," Working papers 2003-49, University of Connecticut, Department of Economics.
    3. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
    4. 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.
    5. 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.
    6. repec:fth:oxesaf:98-8 is not listed on IDEAS
    7. Sachs, J-D & Warner, A-M, 1996. "Sources of Slow Growth in African Economies," Papers 545, Harvard - Institute for International Development.
    8. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
    9. 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.
    10. Paul Collier, 1998. "The political economy of ethnicity," Economics Series Working Papers WPS/1998-08, University of Oxford, Department of Economics.
    11. Robert H. Bates, 2000. "Ethnicity and Development in Africa: A Reappraisal," American Economic Review, American Economic Association, vol. 90(2), pages 131-134, May.
    12. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
    13. 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.
    14. 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.
    15. Jan Willem Gunning & Paul Collier, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March.
    16. 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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