Decomposition of Ethnic Heterogeneity on Growth

Eiji Yamamura () and Inyong Shin

Comparative Economic Studies, 2013, vol. 55, issue 1, 59-75

Abstract: Ethnic heterogeneity influences economic growth through various channels such as efficiency improvement and capital accumulation. However, it is not settled exactly as to how ethnic heterogeneity affects these channels. Hence, this paper attempts to examine the effects of heterogeneity on economic growth using data envelopment analysis. The empirical results of the estimations show that heterogeneity has a negative effect on efficiency improvements. However, heterogeneity has no effect on capital accumulation. This implies that ethnic heterogeneity hinders positive externalities such as information spillovers, which hampers economic growth.

Date: 2013
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Related works:
Working Paper: Decomposition of ethnic heterogeneity on growth (2012)
Working Paper: Decomposition of ethnic heterogeneity on growth (2012)
Working Paper: Decomposition of ethnic heterogeneity on growth (2011)
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