How ethnic diversity affects economic Development?

Erkan Gören

No V-353-13, Working Papers from University of Oldenburg, Department of Economics

Abstract: This paper investigates the empirical relationship between the two concepts of ethnicity and economic growth. Ethnicity is assumed to affect economic growth through a number of possible transmission channels that are generally included in cross-country growth regressions by proposing an extended econometric system of equations to describe growth incorporates new channel variables for the potential indirect effects of ethnicity that are important in the process of economic development. The results, based on a sample of 95 countries for the period 1960-1999, suggest that the concept of ethnic fractionalization is a strong predictive measure for the direct effect of ethnicity on growth, whereas the concept of ethnic polarization has non-negligible indirect economic effects through the specified channel variables.

Keywords: ethnic diversity; fractionalization; polarization; transmission channels; economic growth (search for similar items in EconPapers)
JEL-codes: O11 O5 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2012-10, Revised 2012-10
New Economics Papers: this item is included in nep-dem, nep-dev and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Oldenburg Working Papers V-353-13

Downloads: (external link)
http://www.vwl.uni-oldenburg.de/download/V-353-13.pdf First version, 2012 (application/pdf)

Related works:
Working Paper: How Ethnic Diversity Affects Economic Development (2013)
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:old:dpaper:353

Access Statistics for this paper

More papers in Working Papers from University of Oldenburg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Catharina Schramm ().