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Diversity of Communities and Economic Development: An Overview

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  • Ranis, Gustav

    (Yale University)

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," Working Papers 69, Yale University, Department of Economics.
    • Handle: RePEc:ecl:yaleco:69
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    File URL: http://economics.yale.edu/sites/default/files/files/Working-Papers/wp000/ddp0069.pdf
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    Cited by:

    1. 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.
    2. Hamaguchi, Nobuaki, 2011. "Evidence from Spatial Correlation of Poverty and Income in Kenya," Working Papers 35, JICA Research Institute.
    3. Berman, Bruce J, 2010. "Ethnicity and Democracy in Africa," Working Papers 22, JICA Research Institute.
    4. 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.
    5. 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.

    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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