Can institutions resolve ethnic conflict?

William Easterly

    Research output: Contribution to journalArticle

    Abstract

    Previous studies have found strong institutional effects of corruption and lack of rule of law on economic growth. Easterly and Levine found direct and indirect effects of ethnic diversity on economic growth. I find that institutional factors interact with ethnic diversity, as they affect whether ethnic conflict is destructive or is contained by the rules of the game. Ethnic diversity has a more adverse effect on economic policy and growth when institutions are poor. To put it another way, poor institutions have an even more adverse effect on growth and policy when ethnic diversity is high. Conversely, in countries with sufficiently good institutions, ethnic diversity does not lower growth or worsen economic policies. Good institutions also lower the risk of wars and genocides that might otherwise result from ethnic fractionalization. Ethnically diverse nations that wish to endure in peace and prosperity must build good institutions.

    Original languageEnglish (US)
    Pages (from-to)687-706
    Number of pages20
    JournalEconomic Development and Cultural Change
    Volume49
    Issue number4
    StatePublished - 2001

    Fingerprint

    ethnic conflict
    economic growth
    economic policy
    Economic Policy
    corruption
    institutional factors
    prosperity
    constitutional state
    peace
    effect
    Ethnic diversity
    Ethnic conflict
    lack
    Economic growth

    ASJC Scopus subject areas

    • Business and International Management

    Cite this

    Can institutions resolve ethnic conflict? / Easterly, William.

    In: Economic Development and Cultural Change, Vol. 49, No. 4, 2001, p. 687-706.

    Research output: Contribution to journalArticle

    Easterly, William. / Can institutions resolve ethnic conflict?. In: Economic Development and Cultural Change. 2001 ; Vol. 49, No. 4. pp. 687-706.
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