Document Type
Article
Source of Publication
Economics Letters
Publication Date
6-1-2017
Abstract
© 2017 The Authors While many studies stressed the importance of ethnic fractionalization on long-term economic growth, neither ethnic fractionalization always leads to ethnic conflict nor the intensity of conflict is constant over time. To address this potential bias, we construct an ethnic/racial tension index by using the number of US news articles that contain certain keywords. Utilizing this index we test the predictions of a simple theoretical model in a Markov Switching framework which allows to identify the impact of ethnic/racial tension in different states of the economy. Consistent with our theoretical predictions, results show that the magnitude of the impact of ethnic/racial tension is larger during low-growth periods.
DOI Link
ISSN
Publisher
Elsevier B.V.
Volume
155
First Page
100
Last Page
103
Disciplines
Business
Keywords
Ethnic tension, Markov Switching, News, Racial tension
Scopus ID
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Arin, K. Peren; Koyuncu, Murat; and Spagnolo, Nicola, "A note on the macroeconomic consequences of ethnic/racial tension" (2017). All Works. 191.
https://zuscholars.zu.ac.ae/works/191
Indexed in Scopus
yes
Open Access
yes
Open Access Type
Hybrid: This publication is openly available in a subscription-based journal/series