FRACTIONALIZATION,POLARIZATION, AND ECONOMIC GROWTH: IDENTIFYING THE TRANSMISSION CHANNELS |
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| Authors: | ELISSAIOS PAPYRAKIS PAK HUNG MO |
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| Affiliation: | 1. Papyrakis: Senior Lecturer (Associate Professor) in Economics, School of International Development, University of East Anglia, Norwich NR4 7TJ, UK;2. Institute for Environmental Studies, Vrije Universiteit Amsterdam, De Boelelaan 1087, 1081 HV Amsterdam, The Netherlands. Phone 44‐1603592338, Fax 44‐1603451999;3. Mo: Associate Professor in Economics, Department of Economics, Hong Kong Baptist University, Kowloon, Hong Kong. Phone 852‐34117546, Fax 852‐34115580The authors thank the editor and an anonymous referee for their many helpful comments on the paper. |
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| Abstract: | In this article, we examine empirically both the direct and indirect links between ethnic fragmentation and economic growth. We find that both ethnic fractionalization and polarization are negatively associated with growth if considered in isolation; an effect that is though primarily attributed to their link to other growth‐related activities (i.e., investment, conflict, control of corruption, fertility). We study the corresponding transmission channels and calculate their relative importance in explaining a development curse based on ethnic diversity. For both measures of ethnic fragmentation, we find the corruption channel to be the most important one. (JEL C21, O11, Z13) |
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