Ethnic fractionalisation, migration and growth

Abstract

This paper has the aim of contributing to the existing research by analysing two particular topics. First of all, we show that the model specifications by Alesina et al. (J Econ Growth 8:155–194, 2003), which connects high ethnic fractionalisation to lower growth via bad policy variables, cannot fully explain the negative ethnic fractionalisation effect of the 1990s Sub-Saharan African growth experience. Moreover, we show that the remaining negative effect of ethnic fractionalisation on growth in Sub-Saharan Africa in the 1990s is due to an increased importance of adverse governance. Second, and on a very different note, we empirically investigate if ethnic fractionalisation might have a positive effect in a nation which is ethnically diverse due to immigration. There is evidence that it is important to distinguish between these two different kinds of ethnic fractionalisation.