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Corruption, growth and ethnolinguistic fractionalization: a theoretical model

Author

Listed:
  • Roy Cerqueti

    (University of Macerata)

  • Raffaella Coppier

    (University of Macerata)

  • Gustavo Piga

    (University of Rome Tor Vergata)

Abstract

This paper analyzes the existing relationship between ethnolinguistic fractionalization, corruption and the growth rate of a country. We provide a simple theoretical model. We show that a non-linear relationship between fractionalization and corruption exists: corruption is high in homogeneous or very fragmented countries, but low where fractionalization is intermediate. In fact, when ethnic diversity is intermediate, constituencies act as a checkand balance device to limit ethnically-based corruption. Consequently, the relationship between fractionalization and growth rate is also non-linear: growth is high in the middle range of ethnic diversity, low in homogeneous or very fragmented countries.

Suggested Citation

  • Roy Cerqueti & Raffaella Coppier & Gustavo Piga, 2009. "Corruption, growth and ethnolinguistic fractionalization: a theoretical model," Working Papers 57-2009, Macerata University, Department of Finance and Economic Sciences, revised Jan 2010.
  • Handle: RePEc:mcr:wpdief:wpaper00057
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    Cited by:

    1. Serena Brianzoni & Raffaella Coppier & Elisabetta Michetti, 2015. "Multiple equilibria in a discrete time growth model with corruption in public procurement," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2387-2410, November.
    2. Raffaella Coppier & Mauro Costantini & Gustavo Piga, 2013. "The Role Of Monitoring Of Corruption In A Simple Endogenous Growth Model," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 1972-1985, October.
    3. repec:spr:annopr:v:243:y:2016:i:1:d:10.1007_s10479-014-1567-9 is not listed on IDEAS

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