The Effects of Economic Globalisation and Ethnic Fractionalisation on Redistribution
Open access
Date
2019-12Type
- Working Paper
ETH Bibliography
yes
Altmetrics
Abstract
We examine the effect of economic globalisation on income redistribution and hypothesise that it depends on ethnic fractionalisation. In highly fractionalised countries, powerful ethnicities are able to extract globalisation-induced benefits, whereas their governments face substantial political obstacles when redistributing income between ethnic groups. Using the newly constructed KOF Globalisation Index, we find supportive evidence for the interactive effect of ethnic fractionalisation and de jure financial globalisation on redistribution. In particular, the total effect of de jure financial globalisation on redistribution is negative in highly fractionalised countries. Governments in these countries are apparently not only reluctant to offset potential consequences stemming from de jure financial globalisation, but they even reduce redistribution to lower levels.
Keywords: Income redistribution; Globalisation; Ethnic fractionalisation. Show more
Permanent link
https://doi.org/10.3929/ethz-b-000383383Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichSubject
Income redistribution; Globalisation; Ethnic fractionalisationOrganisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert
Related publications and datasets
Is supplemented by: https://doi.org/10.3929/ethz-b-000384039
More
Show all metadata
ETH Bibliography
yes
Altmetrics