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School of Business | Department of Economics | Economics | 2014
Thesis number: 13544
The effect of good institutions on the economic consequences of ethnic fractionalization
Author: Ahti, Miro
Title: The effect of good institutions on the economic consequences of ethnic fractionalization
Year: 2014  Language: fin
Department: Department of Economics
Academic subject: Economics
Index terms: kansantaloustiede; economics; taloudellinen kasvu; economic growth; tasa-arvo; equality; demokratia; democracy; instituutiot; institutions
Pages: 71
Full text:
» hse_ethesis_13544.pdf pdf  size:1003 KB (1026525)
Key terms: economics, economic growth, ethnic fractionalization, institutions, economic development
Research objectives:

The purpose of this thesis is to study, whether institutions affect the negative long-term economic consequences of ethnic fractionalization. The hypothesis is that in more democratic and liberal context, ethnic fractionalization won't have the negative consequences on the economic well-being that it has in the less free institutional context.


The thesis consist of a literature review and an econometric study. The effects of institutions are examined with OLS regressions as well as regressions, where institutions are instrumented. The study uses several different measures for institutional quality.

Research findings:

While there are some theoretical reasons and some previous empirical work suggesting that institutions diminish the negative effects of ethnic fractionalization on long-term economic welfare, I can't find evidence to substantiate this claim in my own empirical work.
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