Download this Paper Open PDF in Browser

Globalization, Institutions, and the Ethnic Divide: Recent Longitudinal Evidence

23 Pages Posted: 14 Apr 2012  

Phani V. Wunnava

Middlebury College; Institute for the Study of Labor (IZA)

Robert E. Prasch

Middlebury College - Department of Economics; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Aniruddha Mitra

affiliation not provided to SSRN

Abstract

This paper investigates the determinants of economic growth emphasizing the role of institutional quality, social fragmentation, and increasing global integration on recent growth experience. Our longitudinal data consists of 103 countries covering the period 1992-2005. We find that democracies have significantly outperformed autocracies over the sample period and the security of property rights has played a critical role in promoting economic growth. Ethnic heterogeneity has been a significant impediment to growth but religious and linguistic heterogeneity have not. Further, while economic globalization has had a general beneficial impact on economic growth, societies marked by greater ethnic heterogeneity have actually gained more from global integration. This suggests the importance of globalization in redressing the detrimental impact of ethnic cleavages in society (Hegre et al, 2003; Bhagwati, 2004; Mousseau and Mousseau, 2008; Dreher et al, 2008).

Keywords: growth, democracy, property rights, ethnic heterogeneity, globalization

JEL Classification: O47, O43, P14

Suggested Citation

Wunnava, Phani V. and Prasch, Robert E. and Mitra, Aniruddha, Globalization, Institutions, and the Ethnic Divide: Recent Longitudinal Evidence. IZA Discussion Paper No. 6459. Available at SSRN: https://ssrn.com/abstract=2039645

Phani V. Wunnava (Contact Author)

Middlebury College ( email )

Middlebury, VT 05753
United States

Institute for the Study of Labor (IZA) ( email )

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

Robert E. Prasch

Middlebury College - Department of Economics ( email )

Munroe Hall
Middlebury, VT 05753
United States

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Aniruddha Mitra

affiliation not provided to SSRN ( email )

Paper statistics

Downloads
40
Abstract Views
366