Abstract
Ethnic diversity is endogenous to socio-economic development in the long-term. However, a number of early empirical studies are to regard ethnic diversity as an exogenous factor. By using instruments for ethnic diversity, this paper re-examines the impact of the ethnic diversity on democracy and correct this misspecification. This paper shows that ethnic diversity has a significant influence on political outcomes and earlier results based on OLS estimations may have misunderstand on the effect of ethnic diversity.
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