A dissimilarity-adjusted index of ethnic diversity: Measurement and implications for findings on conflict, growth and trade

Philipp Kolo (philipp.kolo@googlemail.com)

No 195, Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG

Abstract: Existing indices of ethnic diversity are generally based on pre-defined groups, disregarding the (dis)similarities between them. This paper proposes an index that includes the dissimilarity in language, ethno-racial characteristcs and religion between groups. The resulting distance-adjusted ethno-linguistic fractionalization index (DELF) is based on highly disaggregated data on the language, ethnic and religious composition of groups and allows an assessment of differentiation between groups within and across countries. The DELF is subsequently applied by replicating some key studies on the effects of ethnic heterogeneity on economic outcomes. The results confirm the generally found growth-reducing effect of ethnic heterogeneity but also shows that this does not hold true for ethnic diversity in more developed countries. As regards the cultural distance between countries and its impact on trade, the DELF is, indeed, a very valuable measure of cultural affinity between countries, also showing this affinity affects trade flows in a positive way, especially of heterogenous goods.

Keywords: Composite Index; Conflict; Distance; Ethno-Linguistic Fractionalization (ELF); Growth; Trade (search for similar items in EconPapers)
JEL-codes: C43 D63 D74 F15 O10 Z10 (search for similar items in EconPapers)
Date: 2016-01-27
New Economics Papers: this item is included in nep-evo and nep-gro
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_195.pdf (application/pdf)

Related works:
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:got:gotcrc:195

Access Statistics for this paper

More papers in Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG Platz der Goettinger Sieben 3; D-37073 Goettingen, GERMANY.
Bibliographic data for series maintained by Dominik Noe (dnoe@uni-goettingen.de).