TY - JOUR
T1 - Can institutions resolve ethnic conflict?
AU - Easterly, W.
N1 - Copyright:
Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2001
Y1 - 2001
N2 - Previous studies have found strong institutional effects of corruption and lack of rule of law on economic growth. Easterly and Levine found direct and indirect effects of ethnic diversity on economic growth. I find that institutional factors interact with ethnic diversity, as they affect whether ethnic conflict is destructive or is contained by the rules of the game. Ethnic diversity has a more adverse effect on economic policy and growth when institutions are poor. To put it another way, poor institutions have an even more adverse effect on growth and policy when ethnic diversity is high. Conversely, in countries with sufficiently good institutions, ethnic diversity does not lower growth or worsen economic policies. Good institutions also lower the risk of wars and genocides that might otherwise result from ethnic fractionalization. Ethnically diverse nations that wish to endure in peace and prosperity must build good institutions.
AB - Previous studies have found strong institutional effects of corruption and lack of rule of law on economic growth. Easterly and Levine found direct and indirect effects of ethnic diversity on economic growth. I find that institutional factors interact with ethnic diversity, as they affect whether ethnic conflict is destructive or is contained by the rules of the game. Ethnic diversity has a more adverse effect on economic policy and growth when institutions are poor. To put it another way, poor institutions have an even more adverse effect on growth and policy when ethnic diversity is high. Conversely, in countries with sufficiently good institutions, ethnic diversity does not lower growth or worsen economic policies. Good institutions also lower the risk of wars and genocides that might otherwise result from ethnic fractionalization. Ethnically diverse nations that wish to endure in peace and prosperity must build good institutions.
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U2 - 10.1086/452521
DO - 10.1086/452521
M3 - Article
AN - SCOPUS:0034842311
VL - 49
SP - 687
EP - 706
JO - Economic Development and Cultural Change
JF - Economic Development and Cultural Change
SN - 0013-0079
IS - 4
ER -