On the Dynamics of Ethnic Fractionalization

45 Pages Posted: 28 Jun 2007

See all articles by Nauro F. Campos

Nauro F. Campos

University College London; University of Michigan at Ann Arbor - The William Davidson Institute; IZA Institute of Labor Economics

Vitaliy S. Kuzeyev

Ak-Bidai Ltd.

Multiple version iconThere are 2 versions of this paper

Date Written: June 2007

Abstract

Does fractionalization change over time? If so, are there any substantial implications for economic performance? To answer such questions, we construct a new panel data set with fractionalization measures for 26 former communist countries covering the period from 1989 to 2002. Our fractionalization measures show that transition economies became more ethnically homogenous over such a short period of time, although the same did not happen in terms of linguistic and religious fractionalization. In line with the most recent literature, there seems to be little effect of (exogenous) fractionalization on macroeconomic performance (that is, on per capita GDP growth). However, we find that dynamic ethnic fractionalization is negatively related to growth (although this is still not the case for linguistic and religious fractionalization). These findings are robust to different specifications, polarization measures, instrument sets as well as to a composite index of ethnic-linguistic-religious fractionalization.

Keywords: ethnic fractionalization, polarization, growth, transition economies

JEL Classification: O11, Z12, O55, H1

Suggested Citation

Campos, Nauro F. and Kuzeyev, Vitaliy S., On the Dynamics of Ethnic Fractionalization (June 2007). IZA Discussion Paper No. 2822, Available at SSRN: https://ssrn.com/abstract=996401 or http://dx.doi.org/10.2139/ssrn.996401

Nauro F. Campos (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Vitaliy S. Kuzeyev

Ak-Bidai Ltd. ( email )

Chehov 103
Kostanai, 110000
Kazakhstan

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