The effects of economic globalisation and ethnic fractionalisation on redistribution

Regina Pleninger and Jan-Egbert Sturm

World Development, 2020, vol. 130, issue C

Abstract: We examine the effect of economic globalisation on income redistribution and hypothesise that it depends on ethnic fractionalisation. In highly fractionalised countries, powerful ethnicities are able to extract globalisation-induced benefits, whereas their governments face substantial political obstacles when redistributing income between ethnic groups. Using the newly constructed KOF Globalisation Index, we find supportive evidence for the interactive effect of ethnic fractionalisation and de jure financial globalisation on redistribution. In particular, the total effect of de jure financial globalisation on redistribution is negative in highly fractionalised countries. Governments in these countries are apparently not only reluctant to offset potential consequences stemming from de jure financial globalisation, but they even reduce redistribution to lower levels.

Keywords: Income redistribution; Globalisation; Ethnic fractionalisation (search for similar items in EconPapers)
JEL-codes: D31 D63 F15 O11 O15 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X20300711
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Effects of Economic Globalisation and Ethnic Fractionalisation on Redistribution (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:130:y:2020:i:c:s0305750x20300711

DOI: 10.1016/j.worlddev.2020.104945

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().