Ethnic Heterogeneity and Public Goods Provision in Zambia: Evidence of a Subnational “Diversity Dividend”

Gisselquist, Rachel M.; Leiderer, Stefan; Niño‐Zarazúa, Miguel

doi:10.1016/j.worlddev.2015.10.018

Cited by 80 publications

(66 citation statements)

References 57 publications

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“…Following Easterly and Rebelo (), Gisselquist, Leiderer, and Niño‐Zarazúa () and Tanzi (), we use the logarithm of population and the share of agriculture in GDP as external instruments. Easterly and Rebelo () and Gisselquist et al .…”

Section: Econometric Methodsmentioning

confidence: 99%

“…Easterly and Rebelo () and Gisselquist et al . () find that the scale of the economy (measured by its population) is an important determinant of fiscal policy in general and the level of public spending in particular. They provide evidence in favour of strong scale effects: countries with higher population have lower public spending.…”

Section: Econometric Methodsmentioning

confidence: 99%

“…Following Easterly and Rebelo (1993), Gisselquist, Leiderer, and Niño-Zarazúa (2016) and Tanzi (1992), we use the logarithm of population and the share of agriculture in GDP as external instruments. Easterly and Rebelo (1993) and Gisselquist et al (2016) find that the scale of the economy (measured by its population) is an important determinant of fiscal policy in general and the level of public spending in particular. They provide evidence in favour of strong scale effects: countries with higher population have lower public spending.…”

Section: Econometric Methodsmentioning

confidence: 99%

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Does Social Spending Improve Welfare in Low‐income and Middle‐income Countries?

Haile

Niño‐Zarazúa

2017

J of Intl Development

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Over the past two decades, there has been unprecedented attention to the promotion of human development via government spending in the social sectors as a conditio sine qua non for economic growth and improved aggregate welfare. Yet the existing evidence on the subject remains limited and contested. This paper contributes to the literature by examining the causal effect of government spending on the social sectors (health, education and social protection) on three measures of aggregate welfare: the Human Development Index, the Inequality-adjusted Human Development Index and child mortality rates, using longitudinal data from 55 low-income and middle-income countries from 1990 to 2009. We find strong evidence to support the proposition that government social spending has played a significant role in improving aggregate welfare in the developing world. Our results are fairly robust to, inter alia, the method of estimation, the set of control variables and the use of alternative samples and instruments.

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Section: Econometric Methodsmentioning

confidence: 99%

Section: Econometric Methodsmentioning

confidence: 99%

Section: Econometric Methodsmentioning

confidence: 99%

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Does Social Spending Improve Welfare in Low‐income and Middle‐income Countries?

Haile

Niño‐Zarazúa

2017

J of Intl Development

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“…Despite arguments about ethnic diversity and low economic growth, low public goods provision and low governance, recent empirical studies report that higher diversity increases economic growth and the quality of economic policies (Bove and Elia ; de Soysa and Vadlamannati ). Moreover, several sub‐national studies suggest that high social diversity increases public goods, even if studies at the national level suggest that diversity affects public spending negatively (Gisselquist, Leiderer and Nino‐Zarazua ). The empirical evidence, thus, remains highly mixed and contentious.…”

Section: Theorymentioning

confidence: 99%

Does Ethnolinguistic Diversity Preclude Good Governance? A Comparative Study with Alternative Data, 1990‐2015

Soysa

Almås

2019

Kyklos

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SUMMARY To what extent does ethno‐linguistic diversity hinder good governance? Using a variety of data measuring political and economic corruption for 150 countries over 24 years, we find positive effects between ethno‐linguistic diversity and corruption, but the substantive effects are very slight. Higher diversity also predicts higher economic freedom and its subcomponents, measures routinely used as proxies of sound economic governance. Indicators of ethnic frictions measured as ethnic exclusion from state power and discrimination, show positive effects on good governance, results at odds with the idea that governance is harmed by fraught ethnic relations. These findings suggest that the effects of societal diversity do not uniformly explain the failure of governance. We also find diversity to matter negatively when assessing violent state repression of dissent. The results are robust to a host of alternative specifications, data, and estimating strategy, including the inclusion of region fixed effects and hybrid fixed effects.

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“…There exists a large literature linking diversity and socioeconomic outcomes; one part of this literature suggests that ethnic and linguistic diversity, especially at the country level, is associated with inferior outcomes -lower GDP growth, lower literacy rate, lower investment, lower provision of public goods, less political freedom, higher infant mortality, higher extent of corruption and higher incidence of civil conflicts (Alesina et al, 2003;Alesina and La Ferrara, 2005;Montalvo and Reynal-Querol, 2005;Miguel and Gugerty, 2005), while other contributions show that the role of ethnic fractionalisation positive (Gisselquist et al, 2016) or insignificant (Fearon and Laitin, 2003).…”

Section: Instrumentsmentioning

confidence: 99%

Remittances and informal work

Ivļevs

2016

IJM

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1 Artjoms Ivlevs 2 Bristol Business School (UWE Bristol) and IZA AbstractPurpose -This paper explores the effect of remittances on informal employment in the migrants' countries of origin, looking both at the remittance-receiving and non-migrant households.Design/methodology/approach -Using data from a large survey conducted in six transition economies of Eastern Europe and Central Asia, the determinants of three labour market outcomes -not working, working formally and working informally -are estimated in a multinomial probit model. The endogeneity of remittances is dealt with instrumental variables following the two-stage residual inclusion technique. To assess possible impact of remittances on non-migrant households, conditional correlations between the labour market outcomes of non-migrant households and the region-level share of remittance receivers are obtained.Findings -Both correlational and instrumental variable analyses suggest that that receiving remittances increases the likelihood of working informally. At the regional level, high prevalence of remittances is associated with a higher likelihood of informal work among the non-migrant households. Migration and remittances may thus be contributing to informal employment in migration-sending countries.Research limitations/implications -The empirical analysis is based on cross-sectional data, which do not allow isolating the effects of unobserved respondent heterogeneity. To deal with this issue, future research could use panel data.Originality/value -The study explicitly considers the effects of remittances on formal and informal employment of remittances receivers as well as people who do not receive remittances. It advances our understanding of what drives informality in developing and transition economies.

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Ethnic Heterogeneity and Public Goods Provision in Zambia: Evidence of a Subnational “Diversity Dividend”

Cited by 80 publications

References 57 publications

Does Social Spending Improve Welfare in Low‐income and Middle‐income Countries?

Does Social Spending Improve Welfare in Low‐income and Middle‐income Countries?

Does Ethnolinguistic Diversity Preclude Good Governance? A Comparative Study with Alternative Data, 1990‐2015

Remittances and informal work

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