Diversity of communities and economic development: An overview

Arbeitspapier

This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions are important determinants of adverse development outcomes. The role of decentralization, democracy and markets as potential remedies are discussed. The paper then presents a number of preliminary hypotheses on the relationship between diversity and instability in order to stimulate future research.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Center Discussion Paper ; No. 1001

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Economic Growth and Aggregate Productivity: General ; Institutions and Growth ; Economywide Country Studies: Africa
• Subject: Africa ; Diversity ; Economic Growth ; Instability

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ranis, Gustav
• Event: Veröffentlichung
• (who): Yale University, Economic Growth Center
• (where): New Haven, CT
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/59151
• Last update: 10.03.2025, 11:44 AM CET