Reducing the Impact of Ethnic Tensions on Economic Growth – Economic or Political Institutions?
Posted: 28 Dec 2010
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: 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
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