No One True Path: Uncovering the Interplay between Geography, Institutions, and Fractionalization in Economic Development

Journal of Applied Econometrics, Vol. 25, No. 7, 2010.

49 Pages Posted: 3 Dec 2004 Last revised: 24 Apr 2011

See all articles by Chih Ming Tan

Chih Ming Tan

University of North Dakota - College of Business & Public Administration - Department of Economics

Date Written: February 8, 2008

Abstract

Do institutions rule when explaining cross-country divergence? By employing regression tree analysis to uncover the existence and nature of multiple development clubs and growth regimes, this paper finds that to a large extent they do. However, the role of ethnic fractionalization cannot be dismissed. The findings suggest that sufficiently high-quality institutions may be necessary for the negative impact on development from high levels of ethnic fractionalization to be mitigated. Interestingly, I find no role for geographic factors; neither those associated with climate nor physical isolation, in explaining divergence. There is also no evidence to suggest a role for religious fractionalization.

Keywords: Data mining, regression trees, institutions, geography, fractionalization, economic growth, Africa

JEL Classification: C45, C49, C52, N15, N16, N17, O10

Suggested Citation

Tan, Chih Ming, No One True Path: Uncovering the Interplay between Geography, Institutions, and Fractionalization in Economic Development (February 8, 2008). Journal of Applied Econometrics, Vol. 25, No. 7, 2010., Available at SSRN: https://ssrn.com/abstract=625685

Chih Ming Tan (Contact Author)

University of North Dakota - College of Business & Public Administration - Department of Economics ( email )

293 Centennial Drive Stop 8369
Grand Forks, ND 58202-8369
United States

HOME PAGE: http://sites.google.com/site/chihmingtan/home

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