IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/90257.html
   My bibliography  Save this paper

Public goods and ethnic diversity: evidence from deforestation in Indonesia

Author

Listed:
  • Alesina, Alberto
  • Gennaioli, Caterina
  • Lovo, Stefania

Abstract

This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization. To identify a causal relation we exploit the exogenous timing of variation in the level of ethnic heterogeneity due to the creation of new jurisdictions. We provide evidence consistent with a lower control of politicians, through electoral punishment, in more ethnically fragmented districts. Our results are consistent with the literature on (under) provision of public goods in ethnically diverse societies.

Suggested Citation

  • Alesina, Alberto & Gennaioli, Caterina & Lovo, Stefania, 2019. "Public goods and ethnic diversity: evidence from deforestation in Indonesia," LSE Research Online Documents on Economics 90257, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:90257
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/90257/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:hic:wpaper:205 is not listed on IDEAS
    2. Alberto Alesina & Eliana La Ferrara, 2000. "Participation in Heterogeneous Communities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 847-904.
    3. repec:hrv:faseco:4553034 is not listed on IDEAS
    4. Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004. "Opportunistic Political Cycles: Test in a Young Democracy Setting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1301-1338.
    5. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    6. Stelios Michalopoulos, 2012. "The Origins of Ethnolinguistic Diversity," American Economic Review, American Economic Association, vol. 102(4), pages 1508-1539, June.
    7. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    8. Arianto A. Patunru & Neil McCulloch & Christian von Luebke, 2011. "A Tale of Two Cities: The Political Economy of Local Investment Climates in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 48(7), pages 799-816, July.
    9. Baland, Jean-Marie & Bardhan, Pranab & Das, Sanghamitra & Mookherjee, Dilip, 2010. "Forests to the People: Decentralization and Forest Degradation in the Indian Himalayas," World Development, Elsevier, vol. 38(11), pages 1642-1656, November.
    10. Skoufias, Emmanuel & Narayan, Ambar & Dasgupta, Basab & Kaiser, Kai, 2014. "Electoral accountability and local government spending in Indonesia," Policy Research Working Paper Series 6782, The World Bank.
    11. Lisa Cameron & Manisha Shah, 2014. "Can Mistargeting Destroy Social Capital and Stimulate Crime? Evidence from a Cash Transfer Program in Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 62(2), pages 381-415.
    12. Robin Burgess & Matthew Hansen & Benjamin A. Olken & Peter Potapov & Stefanie Sieber, 2012. "The Political Economy of Deforestation in the Tropics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(4), pages 1707-1754.
    13. Jean-Marie Baland & Pranab Bardhan & Sanghamitra Das & Dilip Mookherjee & Rinki Sarkar, 2010. "The Environmental Impact of Poverty: Evidence from Firewood Collection in Rural Nepal," Economic Development and Cultural Change, University of Chicago Press, vol. 59(1), pages 23-61, October.
    14. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    15. Tommaso Nannicini & Andrea Stella & Guido Tabellini & Ugo Troiano, 2013. "Social Capital and Political Accountability," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 222-250, May.
    16. Samuel Bazzi & Matthew Gudgeon, 2021. "The Political Boundaries of Ethnic Divisions," American Economic Journal: Applied Economics, American Economic Association, vol. 13(1), pages 235-266, January.
    17. Alberto Alesina, 2002. "The Size of Countries: Does it Matter?," Harvard Institute of Economic Research Working Papers 1975, Harvard - Institute of Economic Research.
    18. Gerard Padro i Miquel & Nancy Qian & Yang Yao, 2012. "Social Fragmentation, Public Goods and Elections: Evidence from China," NBER Working Papers 18633, National Bureau of Economic Research, Inc.
    19. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    20. Neil McCulloch & Edmund Malesky, 2011. "Does better local governance improve district growth performance in Indonesia?," Working Paper Series 1711, Department of Economics, University of Sussex Business School.
    21. Casson, Anne & Obidzinski, Krystof, 2002. "From New Order to Regional Autonomy: Shifting Dynamics of "Illegal" Logging in Kalimantan, Indonesia," World Development, Elsevier, vol. 30(12), pages 2133-2151, December.
    22. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    23. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2013. "The Determinants of Attitudes toward Strategic Default on Mortgages," Journal of Finance, American Finance Association, vol. 68(4), pages 1473-1515, August.
    24. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    25. Olken, Benjamin A., 2006. "Corruption and the costs of redistribution: Micro evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 853-870, May.
    26. Bandiera, Oriana & Levy, Gilat, 2011. "Diversity and the power of the elites in democratic societies: Evidence from Indonesia," Journal of Public Economics, Elsevier, vol. 95(11), pages 1322-1330.
    27. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April.
    28. Christian von Luebke, 2009. "The political economy of local governance: findings from an Indonesian field study," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(2), pages 201-230.
    29. Alberto Alesina & Stelios Michalopoulos & Elias Papaioannou, 2016. "Ethnic Inequality," Journal of Political Economy, University of Chicago Press, vol. 124(2), pages 428-488.
    30. Samuel Bazzi & Matthew Gudgeon, "undated". "Local Government Proliferation, Diversity, and Conflict," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-271, Boston University - Department of Economics.
    31. Engel, Stefanie & Palmer, Charles, 2006. "Who owns the right? The determinants of community benefits from logging in Indonesia," Forest Policy and Economics, Elsevier, vol. 8(4), pages 434-446, June.
    32. Cagla Okten & Una Okonkwo Osili, 2004. "Contributions in heterogeneous communities: Evidence from Indonesia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 603-626, December.
    33. Dewi, Sonya & Belcher, Brian & Puntodewo, Atie, 2005. "Village economic opportunity, forest dependence, and rural livelihoods in East Kalimantan, Indonesia," World Development, Elsevier, vol. 33(9), pages 1419-1434, September.
    34. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    35. Alberto Alesina, 2003. "Joseph Schumpeter Lecture: The Size of Countries: Does it Matter?," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 301-316, 04/05.
    36. Miguel, Edward & Gugerty, Mary Kay, 2005. "Ethnic diversity, social sanctions, and public goods in Kenya," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2325-2368, December.
    37. Fitria Fitrani & Bert Hofman & Kai Kaiser, 2005. "Unity in diversity? The creation of new local governments in a decentralising Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 57-79.
    38. Andrew D. Foster & Mark R. Rosenzweig, 2003. "Economic Growth and the Rise of Forests," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 601-637.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Casey, Gregory P. & Owen, Ann L., 2014. "Inequality and Fractionalization," World Development, Elsevier, vol. 56(C), pages 32-50.
    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. Masahiro Shoji, 2018. "Religious Fractionalisation and Crimes in Disaster-Affected Communities: Survey Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 54(10), pages 1891-1911, October.
    4. Samuel Bazzi & Matthew Gudgeon, "undated". "Local Government Proliferation, Diversity, and Conflict," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-271, Boston University - Department of Economics.
    5. Andreoni, James & Payne, A. Abigail & Smith, Justin & Karp, David, 2016. "Diversity and donations: The effect of religious and ethnic diversity on charitable giving," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 47-58.
    6. GOMADO, Kwamivi Mawuli, 2018. "Diversité ethnique et déforestation dans les pays en développement: identification des principaux canaux [Ethnic diversity and deforestation in developing countries: identifying the transmission ch," MPRA Paper 89380, University Library of Munich, Germany.
    7. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    8. Kotera, Go & Mizuno, Nobuhiro & Okada, Keisuke & Samreth, Sovannroeun, 2015. "Ethnic diversity, democracy, and health: Theory and evidence," Research in Economics, Elsevier, vol. 69(3), pages 353-376.
    9. Benos, Nikos & Kammas, Pantelis, 2018. "Workers of the world unite (or not?) The effect of ethnic diversity on the participation in trade unions," MPRA Paper 84880, University Library of Munich, Germany.
    10. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    11. Sefa Awaworyi Churchill & Janet Exornam Ocloo & Diana Siawor-Robertson, 2017. "Ethnic Diversity and Health Outcomes," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 1077-1112, December.
    12. Joseph Flavian Gomes, 2020. "The health costs of ethnic distance: evidence from sub-Saharan Africa," Journal of Economic Growth, Springer, vol. 25(2), pages 195-226, June.
    13. Benos, Nikos & Kammas, Pantelis, 2023. "The effect of ethnic diversity on the participation in social groups: Evidence from trade unions," European Journal of Political Economy, Elsevier, vol. 77(C).
    14. Desmet, Klaus & Gomes, Joseph Flavian & Ortuño-Ortín, Ignacio, 2020. "The geography of linguistic diversity and the provision of public goods," Journal of Development Economics, Elsevier, vol. 143(C).
    15. Dimitrova-Grajzl Valentina & Grajzl Peter & Guse A. Joseph & Smith J. Taylor, 2016. "Racial Group Affinity and Religious Giving: Evidence from Congregation-Level Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 689-725, April.
    16. Marie-Anne Valfort, 2007. "Containing ethnic conflicts through ethical voting? Evidence from Ethiopia," HiCN Working Papers 35, Households in Conflict Network.
    17. Sefa Awaworyi Churchill & Maria Rebecca Valenzuela & Wisdom Sablah, 2017. "Ethnic diversity and firm performance: Evidence from China’s materials and industrial sectors," Empirical Economics, Springer, vol. 53(4), pages 1711-1731, December.
    18. Catalina Tejada & Eliana Ferrara & Henrik Kleven & Florian Blum & Oriana Bandiera & Michel Azulai, 2015. "State Effectiveness, Growth, and Development," Working Papers id:6668, eSocialSciences.
    19. Klaus Desmet & Ignacio Ortuño-Ortín & Romain Wacziarg, 2009. "The political economy of ethnolinguistic cleavages," Working Papers 2009-17, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    20. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.

    More about this item

    Keywords

    deforestation; ethnic diversity; corruption; Indonesia;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:90257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.