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Can ethnic-linguistic diversity explain cross-country differences in social capital formation?

Author

Listed:
  • Cong Wang

    (Department of Border Region Studies, University of Southern Denmark)

  • Bodo Steiner

    (Department of Border Region Studies, University of Southern Denmark)

Abstract

Motivated by theoretical arguments that assert a negative impact of ethnolinguistic diversity on social capital, this paper aims to provide some empirical evidence on the relationship between the two variables. In particular, using a cross section sample of 68 developed and developing countries, this paper has found a significant negative effect of ethnolinguistic diversity on social capital. Countries with fractionalized ethnic and linguistic groups as captured by both log number of languages and Desmet et al. (2012) and La Porta et al. (1999)’s measures on linguistic diversity tend to have lower levels of social trust, fewer memberships in social organizations, deteriorated social norms and structure, hence, lower overall social capital stock.

Suggested Citation

  • Cong Wang & Bodo Steiner, 2015. "Can ethnic-linguistic diversity explain cross-country differences in social capital formation?," Working Papers 6, University of Southern Denmark, Centre for Border Region Studies.
    • Handle: RePEc:sdn:wpaper:6
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    References listed on IDEAS

    as
    1. David, Quentin & Janiak, Alexandre & Wasmer, Etienne, 2010. "Local social capital and geographical mobility," Journal of Urban Economics, Elsevier, vol. 68(2), pages 191-204, September.
    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.
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    4. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    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. 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.
    7. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
    8. Paul J. Burke & Andrew Leigh, 2010. "Do Output Contractions Trigger Democratic Change?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 124-157, October.
    9. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    10. Quamrul Ashraf & Oded Galor, 2013. "Genetic Diversity and the Origins of Cultural Fragmentation," American Economic Review, American Economic Association, vol. 103(3), pages 528-533, May.
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    12. Desmet, Klaus & Ortuño-Ortín, Ignacio & Wacziarg, Romain, 2012. "The political economy of linguistic cleavages," Journal of Development Economics, Elsevier, vol. 97(2), pages 322-338.
    13. Pelle Ahlerup & Ola Olsson, 2012. "The roots of ethnic diversity," Journal of Economic Growth, Springer, vol. 17(2), pages 71-102, June.
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    15. Fearon, James D, 2003. "Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June.
    16. Katungi, Enid & Machethe, Charles Lepepeule & Smale, Melinda, 2007. "Determinants of social capital formation in rural Uganda: Implications for group-based agricultural extension approaches," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 1(2), pages 1-24, September.
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    Citations

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    Cited by:

    1. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    2. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    3. Awaworyi Churchill, Sefa, 2015. "Fractionalization and Entrepreneurial Activities," EconStor Preprints 123723, ZBW - Leibniz Information Centre for Economics.
    4. Sefa Awaworyi Churchill & Davidson Okai & Alberto Posso, 2016. "Internet Use and Ethnic Heterogeneity in a Cross-Section of Countries," Economic Papers, The Economic Society of Australia, vol. 35(1), pages 59-72, March.
    5. Simplice Asongu & Oasis Kodila-tedika, 2017. "Tribalism and Government Effectiveness," Economics Bulletin, AccessEcon, vol. 37(1), pages 156-167.
    6. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    7. Sefa Awaworyi Churchill, 2017. "Fractionalization, entrepreneurship, and the institutional environment for entrepreneurship," Small Business Economics, Springer, vol. 48(3), pages 577-597, March.
    8. Silvia Mendolia & Alex Tosh & Oleg Yerokhin, 2016. "Ethnic Diversity and Trust: New Evidence from Australian Data," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 648-665, December.
    9. Awaworyi Churchill, Sefa & Smyth, Russell, 2017. "Ethnic Diversity and Poverty," World Development, Elsevier, vol. 95(C), pages 285-302.
    10. Awaworyi Churchill, Sefa & Nuhu, Ahmed Salim, 2015. "Ethnic Diversity and Educational Attainment," EconStor Conference Papers 125567, ZBW - Leibniz Information Centre for Economics.
    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. Sefa Awaworyi Churchill, 2019. "Firm financial performance in Sub-Saharan Africa: the role of ethnic diversity," Empirical Economics, Springer, vol. 57(3), pages 957-970, September.
    13. Cong Wang & Bodo Steiner, 2020. "Can social capital explain business performance in Denmark?," Empirical Economics, Springer, vol. 59(4), pages 1699-1722, October.

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    More about this item

    Keywords

    Ethnic and Linguistic Diversity; Social Capital; Economic Growth;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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