Fractionalization, Polarization and Economic Growth: Identifying the Transmission Channels

E. Papyrakis, P.K. Mo

Research output: Contribution to JournalArticleAcademicpeer-review

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. © 2014 Western Economic Association International.
Original languageEnglish
Pages (from-to)1204-1218
JournalEconomic Inquiry
Volume52
Issue number3
Early online date5 Mar 2014
DOIs
Publication statusPublished - 2014

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