Forthcoming, Economic Development and Cultural Change
نویسنده
چکیده
High quality institutions, such as rule of law, bureaucratic quality, freedom from government expropriation, and freedom from government repudiation of contracts, mitigate the adverse economic consequences of ethnic fractionalization identified by Easterly and Levine 1997 and others. In countries with sufficiently good institutions, ethnic diversity does not lower growth or worsen economic policies. High quality institutions also lessen war casualties on national territory and lessen the probability of genocide for a given amount of ethnic fractionalization; however, these forms of violence are not the channel by which ethnic fragmentation and its interaction with institutions affect economic growth.
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