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Interethnic Proximity and Political Development

Author

Listed:
  • Kok, Chun Chee

    (Monash University)

  • Lim, Gedeon

    (Hong Kong university)

  • Shariat, Danial

    (UC Berkeley)

  • Siddique, Abu

    (Royal Holloway, University of London)

  • Tsuda, Shunsuke

    (University of Essex)

Abstract

We exploit a population resettlement program of ethnic minorities in Malaysia to identify long-run effects of interethnic proximity on economic and political development. From 1948 to 1951, the colonial government moved 500,000 rural Chinese into hundreds of isolated, mono-ethnic camps. In ethnic majority Malay communities adjacent to these camps, we find greater economic prosperity and lower vote shares for the ethno-nationalist Malay party. Effects are stronger in areas with historical, interethnic economic complementarities. Primary survey data suggests that trust-building and social integration were key channels. Our findings highlight the importance of persistent, localized contact in the co-evolution of economic and political development.

Suggested Citation

  • Kok, Chun Chee & Lim, Gedeon & Shariat, Danial & Siddique, Abu & Tsuda, Shunsuke, 2025. "Interethnic Proximity and Political Development," IZA Discussion Papers 17776, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17776
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    More about this item

    Keywords

    Malaysia; development; political preference; ethnicity; Chinese;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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