CULTURAL DIVERSITY, DOMESTIC POLITICAL VIOLENCE AND PUBLIC EXPENDITURES

Abstract

This study investigates the relationship between cultural diversity, political violence and public expenditures. Using a cross‐section of cultural diversity indices, it is empirically examined whether cultural diversity caused or intensified political violence in the 1980s and 1990s. It is found that economic factors were statistically significant in the intensity of the violence in the 1980s, whereas political and cultural factors were significant in the 1990s. In addition, ethnic diversity took a significant role in both starting the violence and the intensity of it in the 1990s.