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Diversity of Communities and Economic Development: An Overview

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  • Ranis, Gustav

Abstract

This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions are important determinants of adverse development outcomes. The role of decentralization, democracy and markets as potential remedies are discussed. The paper then presents a number of preliminary hypotheses on the relationship between diversity and instability in order to stimulate future research.

Suggested Citation

  • Ranis, Gustav, 2009. "Diversity of Communities and Economic Development: An Overview," Center Discussion Papers 54531, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:54531
    DOI: 10.22004/ag.econ.54531
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    References listed on IDEAS

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    Cited by:

    1. Berman, Bruce J, 2010. "Ethnicity and Democracy in Africa," Working Papers 22, JICA Research Institute.
    2. Nathan, Max, 2011. "The economics of super-diversity: findings from British cities, 2001-2006," LSE Research Online Documents on Economics 33578, London School of Economics and Political Science, LSE Library.
    3. Hibrahim LIMI KOUOTOU, 2022. "L’effet du conflit de générations entre chef d’Etat et population sur les risques d’instabilité politique en Afrique," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 56, pages 25-40.
    4. Philipp Kolo, 2011. "Questioning Ethnic Fragmentation's Exogeneity - Drivers of Changing Ethnic Boundaries," Ibero America Institute for Econ. Research (IAI) Discussion Papers 210, Ibero-America Institute for Economic Research.
    5. Hamaguchi, Nobuaki, 2011. "Evidence from Spatial Correlation of Poverty and Income in Kenya," Working Papers 35, JICA Research Institute.

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