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Us and Them : Economic Consequences of Ethno-confessional Diversity

Miladinovic, Luka LU (2022) In Lund Studies in Economic History
Abstract
An increasing number of countries are accepting individuals with diverse religious and ethnic backgrounds within their borders – a trend that can be traced to the end of WWII. Theoretically, a society can experience both economic benefits and costs from ethno-confessional diversity. As economies become more open and interconnected, it is vital to have an adequate answer to the question of how ethno-confessional heterogeneity impacts different dimensions of national economies. Through four empirical research papers, this thesis provides relevant insights into the nuanced interplay between ethno-confessional diversity and economic activity and performance. The results obtained indicate that the dynamic ethnic diversity has a negative impact... (More)
An increasing number of countries are accepting individuals with diverse religious and ethnic backgrounds within their borders – a trend that can be traced to the end of WWII. Theoretically, a society can experience both economic benefits and costs from ethno-confessional diversity. As economies become more open and interconnected, it is vital to have an adequate answer to the question of how ethno-confessional heterogeneity impacts different dimensions of national economies. Through four empirical research papers, this thesis provides relevant insights into the nuanced interplay between ethno-confessional diversity and economic activity and performance. The results obtained indicate that the dynamic ethnic diversity has a negative impact on the economic growth on a country-level. However, this impact is probably indirect, meaning that ethnic diversity influences economic growth by affecting some other determinants of the economic performance. The thesis also finds that the increase in ethnic diversity is related to the increase in inequality before redistribution. Interestingly, when the dynamic measures of ethnic diversity are used, the results do not show statistically significant effect of ethnic heterogeneity on inequality after redistribution. Lastly, ethnic strife in both pre- and post-WWII Yugoslavia has impeded economic activity and performance. Preliminary evidence suggest that top-down policies and practices intended to prevent an ethnic conflict were unable to remove the negative impact of ethno-confessional diversity on trade and economic growth. (Less)
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author
supervisor
opponent
  • Associate Professor Vonyo, Tamas, Bocconi University
organization
publishing date
type
Thesis
publication status
published
subject
keywords
economic growth, inequality, ethnic diversity, Yugoslavia
in
Lund Studies in Economic History
issue
106
edition
106
pages
218 pages
publisher
Lund University
defense location
EC3:207
defense date
2022-10-18 14:15:00
ISBN
978-91-87793-84-4
978-91-87793-85-1
language
English
LU publication?
yes
id
3eaeea54-e832-49f5-b1a1-0687cd98a27c
date added to LUP
2022-09-26 17:28:44
date last changed
2023-09-06 09:57:29
@phdthesis{3eaeea54-e832-49f5-b1a1-0687cd98a27c,
  abstract     = {{An increasing number of countries are accepting individuals with diverse religious and ethnic backgrounds within their borders – a trend that can be traced to the end of WWII. Theoretically, a society can experience both economic benefits and costs from ethno-confessional diversity. As economies become more open and interconnected, it is vital to have an adequate answer to the question of how ethno-confessional heterogeneity impacts different dimensions of national economies. Through four empirical research papers, this thesis provides relevant insights into the nuanced interplay between ethno-confessional diversity and economic activity and performance. The results obtained indicate that the dynamic ethnic diversity has a negative impact on the economic growth on a country-level. However, this impact is probably indirect, meaning that ethnic diversity influences economic growth by affecting some other determinants of the economic performance. The thesis also finds that the increase in ethnic diversity is related to the increase in inequality before redistribution. Interestingly, when the dynamic measures of ethnic diversity are used, the results do not show statistically significant effect of ethnic heterogeneity on inequality after redistribution. Lastly, ethnic strife in both pre- and post-WWII Yugoslavia has impeded economic activity and performance. Preliminary evidence suggest that top-down policies and practices intended to prevent an ethnic conflict were unable to remove the negative impact of ethno-confessional diversity on trade and economic growth.}},
  author       = {{Miladinovic, Luka}},
  isbn         = {{978-91-87793-84-4}},
  keywords     = {{economic growth; inequality; ethnic diversity; Yugoslavia}},
  language     = {{eng}},
  month        = {{09}},
  number       = {{106}},
  publisher    = {{Lund University}},
  school       = {{Lund University}},
  series       = {{Lund Studies in Economic History}},
  title        = {{Us and Them : Economic Consequences of Ethno-confessional Diversity}},
  url          = {{https://lup.lub.lu.se/search/files/124576608/329856_1_G5_Luka_M1.pdf}},
  year         = {{2022}},
}