Decomposition of ethnic heterogeneity on growth

Yamamura, Eiji (2012): Decomposition of ethnic heterogeneity on growth.

Abstract

Ethnic heterogeneity influences economic growth through various channels such as efficiency improvement, capital accumulation, and technological progress. However, it is open to discussion exactly how ethnic heterogeneity affects these channels. Hence, this paper attempts to examine the effects of heterogeneity on economic growth using data envelopment analysis. The empirical results of the estimations show that heterogeneity has a negative effect on efficiency improvements. However, heterogeneity has no effect on technological progress and capital accumulation. This implies that ethnic heterogeneity hinders positive externalities such as information spillover, which hampers economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Ethnic fractionalization, Ethnic polarization, Efficiency improvement, Capital accumulation
• Subjects: H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth

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