IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/660.html
   My bibliography  Save this paper

Why ethnic fractionalization? Polarization, ethnic conflict and growth

Author

Abstract

This paper ia an attempt to clarify the relationship between fractionalization, polarization and conflict. The literature on the measurement of ethnic diversity has taken as given that the proper measure for heterogeneity can be calculated by using the fractionalization index. This index is widely used in industrial economics and, for empirical purposes, the ethnolinguistic fragmentation is ready available for regression exercises. Nevertheless the adequacy of a synthetic index of hetergeneity depends on the intrinsic characteristics of the heterogeneous dimension to be measured. In the case of ethnic diversity there is a very strong conflictive dimension. For this reason we argue that the measure of heterogeneity should be one of the class of polarization measures. In fact the intuition of the relationship between conflict and fractionalization do not hold for more than two groups. In contrast with the usual problem of polarization indices, which are of difficult empirical implementation without making some arbitrary choice of parameters, we show that the RQ index, proposed by Reynal-Querol (2002), is the only discrete polarization measure that satisfies the basic properties of polarization. Additionally we present a derivation of the RQ index from a simple rent seeking model. In the empirical section we show that while ethnic polarization has a positive effect on civil wars and, indirectly on growth, this effect is not present when we use ethnic fractionalization.

Suggested Citation

  • José Garcia Montalvo & Marta Reynal-Querol, 2002. "Why ethnic fractionalization? Polarization, ethnic conflict and growth," Economics Working Papers 660, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2002.
  • Handle: RePEc:upf:upfgen:660
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/660.pdf
    File Function: Whole Paper
    Download Restriction: no

    References listed on IDEAS

    as
    1. Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio & Wacziarg, Romain, 2003. "Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-194, June.
    2. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 847-904.
    3. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, January.
    4. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
    5. 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.
    6. 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 222-279, April.
    7. Vigdor, Jacob L., 2002. "Interpreting ethnic fragmentation effects," Economics Letters, Elsevier, vol. 75(2), pages 271-276, April.
    8. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    9. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    10. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1243-1284.
    11. James C. Murdoch & Todd Sandler, 2002. "Economic Growth, Civil Wars, and Spatial Spillovers," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 91-110, February.
    12. repec:cup:apsrev:v:94:y:2000:i:04:p:779-801_22 is not listed on IDEAS
    13. Bluedorn, John C., 2001. "Can democracy help? Growth and ethnic divisions," Economics Letters, Elsevier, vol. 70(1), pages 121-126, January.
    14. repec:hrv:faseco:30747160 is not listed on IDEAS
    15. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
    16. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-223, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Williamson, Jeffrey G, 2006. "Poverty Traps, Distance and Diversity: The Migration Connection," CEPR Discussion Papers 5891, C.E.P.R. Discussion Papers.
    2. Joan Esteban & Debraj Ray, 2005. "A Comparison of Polarization Measures," Working Papers 310, Barcelona Graduate School of Economics.
    3. repec:hal:journl:halshs-00542235 is not listed on IDEAS
    4. Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio & Wacziarg, Romain, 2003. "Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-194, June.
    5. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    6. Philipp Kolo, 2016. "A dissimilarity-adjusted index of ethnic diversity: Measurement and implications for findings on conflict, growth and trade," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 195, Courant Research Centre PEG.
    7. Iñaki Permanyer, 2008. "Social Polarization: Introducing distances between and within groups," UFAE and IAE Working Papers 751.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    8. Asongu, Simplice A. & Kodila-Tedika, Oasis, 2013. "Crime and conflicts in Africa: consequences of corruption?," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 50-55.
    9. Andreoni, James & Payne, A. Abigail & Smith, Justin & Karp, David, 2016. "Diversity and donations: The effect of religious and ethnic diversity on charitable giving," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 47-58.
    10. Philippe Aghion & Alberto Alesina & Francesco Trebbi, 2004. "Endogenous Political Institutions," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 565-611.
    11. Stichnoth, Holger & van der Straeten, Karine, 2009. "Ethnic diversity and attitudes towards redistribution: a review of the literature," ZEW Discussion Papers 09-036, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Klaus Desmet & Ignacio Ortuño-Ortín & Shlomo Weber, 2009. "Linguistic Diversity and Redistribution," Journal of the European Economic Association, MIT Press, vol. 7(6), pages 1291-1318, December.
    13. Giménez Gómez, José M. (José Manuel), 2016. "Linking social heterogeneity and commodity price shocks to civil conflicts," Working Papers 2072/290744, Universitat Rovira i Virgili, Department of Economics.
    14. Matthias Schündeln, 2013. "Ethnic Heterogeneity and the Private Provision of Public Goods," Journal of Development Studies, Taylor & Francis Journals, vol. 49(1), pages 36-55, January.
    15. Victor Ginsburgh & Shlomo Weber, 2018. "The Economics of Language," Working Papers ECARES 2018-18, ULB -- Universite Libre de Bruxelles.
    16. José G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
    17. Elena Fumagalli & laura Fumagalli, 2009. "Like oil and water or chocolate and peanut butter? Ethnic diversity and social participation of young people in England," Working Papers 2009_21, Department of Economics, University of Venice "Ca' Foscari".
    18. Aris Ananta & Dwi Retno Wilujeng Wahyu Utami & Nur Budi Handayani, 2016. "Statistics on Ethnic Diversity in the Land of Papua, Indonesia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(3), pages 458-474, September.
    19. Cole, Matthew A. & Elliott, Robert J.R. & Khemmarat, Khemrutai, 2013. "Local exposure to toxic releases: Examining the role of ethnic fractionalization and polarisation," Ecological Economics, Elsevier, vol. 93(C), pages 249-259.

    More about this item

    Keywords

    Ethnic heterogeneity; civil wars; economic developement;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:660. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.econ.upf.edu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.