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Divergent Effect Of Social Cohesion On Economic Growth In East Asia And Latin America, Horacio Diaz Adda

Honors Theses

In this paper I explore the link between social cohesion and economic growth in Latin America and East Asia. Unlike previous studies, I allow for different slope parameters for the different regions. Using ethno linguistic fractionalization as a proxy, I find that social cohesion has not played an important role in determining growth outcomes in Latin America. While social cohesion has not had a direct effect on growth nor institutions in Latin America, it helps explain a large degree of the growth differentials among Asian countries. Social cohesion mostly impacts growth through its effect on institutional quality. However, these results …