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Reducing The Impact Of Ethnic Tensions On Economic Growth – Economic Or Political Institutions?, Atin Basu Choudhary, Jim Bang, Michael Reksulak
Reducing The Impact Of Ethnic Tensions On Economic Growth – Economic Or Political Institutions?, Atin Basu Choudhary, Jim Bang, Michael Reksulak
Atin Basu Choudhary
We use a standard growth regression model and show that ethnic tensions reduce per capita growth rates. We also find evidence that “good” economic and political institutions improve per capita growth rates. More importantly, good economic institutions mitigate the effect of ethnic tensions on per capita growth while good political institutions do not. Consequently, it is foremost capitalist freedom that promotes peace and development.