No One True Path: Uncovering the Interplay between Geography, Institutions, and Fractionalization in Economic Development

Chih Ming Tan ()

No 512, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: Do institutions “rule” when explaining cross-country divergence? This paper finds that to a large extent they do. However, the role of ethno-linguistic fractionalization cannot be ignored. Sufficiently high-quality institutions are necessary if the negative impact on development from high levels of ethno-linguistic fractionalization is to be mitigated. Interestingly, I find no role for geographic factors; neither those associated with climate nor geographic isolation, in explaining divergence. There is also no evidence to suggest a role for religious fractionalization. Finally, my findings affirm earlier work in the literature that sets apart Sub-Saharan Africa’s development process from the rest of the world.

Keywords: Regression Trees; Economic Growth; Fundamental Determinants (search for similar items in EconPapers)
JEL-codes: C45 C49 C52 N15 N16 N17 O10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev, nep-geo and nep-pke
Date: 2005
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Persistent link: http://EconPapers.repec.org/RePEc:tuf:tuftec:0512

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