Reducing the Impact of Ethnic Tensions on Economic Growth – Economic or Political Institutions?

Posted: 28 Dec 2010

See all articles by Atin Basuchoudhary

Atin Basuchoudhary

Virginia Military Institute

Michael Reksulak

Georgia Southern University; NSF

Date Written: December 27, 2010

Abstract

We use a standard growth regression model and show that ethnic tensions reduce per capita growth rates. We also find evidence that "good" economic and political institutions improve per capita growth rates. More importantly, good economic institutions mitigate the effect of ethnic tensions on per capita growth while good political institutions do not. Consequently, it is foremost capitalist freedom that promotes peace and development.

Keywords: Growth, Ethnic Conflict, Political Rights, Economic Rights

Suggested Citation

Basuchoudhary, Atin and Reksulak, Michael, Reducing the Impact of Ethnic Tensions on Economic Growth – Economic or Political Institutions? (December 27, 2010). Available at SSRN: https://ssrn.com/abstract=1731683

Atin Basuchoudhary (Contact Author)

Virginia Military Institute ( email )

Department of Economics and Business
Scott Shipp Hall
Lexington, VA 24450
United States
5404647450 (Phone)

Michael Reksulak

Georgia Southern University ( email )

P.O. Box 8151
Statesboro, GA 30460-8151
United States

HOME PAGE: http://personal.georgiasouthern.edu/~mreksula

NSF ( email )

4201 Wilson Boulevard
Arlington, VA 22230
United States
7032427266 (Phone)

HOME PAGE: http://www.nsf.gov/funding/pgm_summ.jsp?pims_id=5437&org=SES&from=home

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
503
PlumX Metrics