This paper analyzes the existing relationship between ethnic fractionalization, corruption and the growth rate of a country. We provide a simple theoretical model. We show that a nonlinear relationship between fractionalization and corruption exists: corruption is high in homogeneous or very fragmented countries, but low where fractionalization is intermediate. In fact, when ethnic diversity is intermediate, constituencies act as a check and balance device to limit ethnically-based corruption. Consequently, the relationship between fractionalization and growth rate is also non-linear: growth is high in the middle range of ethnic diversity, low in homogeneous or very fragmented countries.

Coppier, R., Cerqueti, R., Piga, G. (2012). Corruption, growth and ethnic fractionalization: a theoretical model. JOURNAL OF ECONOMICS, 106(2), 153-181 [10.1007/s00712-011-0253-5].

Corruption, growth and ethnic fractionalization: a theoretical model

PIGA, GUSTAVO
2012-06-01

Abstract

This paper analyzes the existing relationship between ethnic fractionalization, corruption and the growth rate of a country. We provide a simple theoretical model. We show that a nonlinear relationship between fractionalization and corruption exists: corruption is high in homogeneous or very fragmented countries, but low where fractionalization is intermediate. In fact, when ethnic diversity is intermediate, constituencies act as a check and balance device to limit ethnically-based corruption. Consequently, the relationship between fractionalization and growth rate is also non-linear: growth is high in the middle range of ethnic diversity, low in homogeneous or very fragmented countries.
giu-2012
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore SECS-P/01 - ECONOMIA POLITICA
English
Coppier, R., Cerqueti, R., Piga, G. (2012). Corruption, growth and ethnic fractionalization: a theoretical model. JOURNAL OF ECONOMICS, 106(2), 153-181 [10.1007/s00712-011-0253-5].
Coppier, R; Cerqueti, R; Piga, G
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/101062
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