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Social fragmentation and economic growth: evidence from developing countries

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  • OKEDIJI, TADE O.

Abstract

This paper proposes a composite measure of ethnic fragmentation, the Social Diversity Index (SDI) to capture inherent multidimensionality not captured in the prevalent Ethno-Linguistic Fractionalization Index (ELF). The SDI more accurately demonstrates the direct effects of hidden diversity values and the extent and corresponding costs of ethnic diversity on economic growth. A comparative empirical analysis of the results from 132 countries employing the SDI and the ELF Index, suggests that the SDI is more robustly correlated with growth, and does a moderately better job of explaining the effect of exogenous static ethnic diversity. However, the empirical effects of ethnic diversity on growth tend to diminish with the inclusion of additional macroeconomic variables.

Suggested Citation

  • Okediji, Tade O., 2011. "Social fragmentation and economic growth: evidence from developing countries," Journal of Institutional Economics, Cambridge University Press, vol. 7(1), pages 77-104, March.
    • Handle: RePEc:cup:jinsec:v:7:y:2011:i:01:p:77-104_00
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    Cited by:

    1. Porten, John & Rhee, Inbok & Gibson, Clark, 2022. "Ethnicity is not public service destiny: The political logic of service distribution in South Africa," World Development, Elsevier, vol. 159(C).
    2. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    3. Gislain S. GANDJON FANKEM & Dieudonné TAKA & Sévérin TAMWO, 2023. "The effect of skills acquired abroad by return migrants on social relations and quality of life in Cameroon," Working Papers of the African Governance and Development Institute. 23/011, African Governance and Development Institute..
    4. Gislain Stéphane GANDJON FANKEM & Dieudonné TAKA & Sévérin TAMWO, 2023. "The effects of new skills acquired abroad by return migrants on social relations and quality of life in Cameroon," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 58, pages 21-49.
    5. Gislain S. GANDJON FANKEM & Dieudonné TAKA & Sévérin TAMWO, 2023. "The effect of skills acquired abroad by return migrants on social relations and quality of life in Cameroon," Working Papers 23/011, European Xtramile Centre of African Studies (EXCAS).

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