Ethnic Diversity, Democracy, and Corruption

Author/Editor:

Etienne B Yehoue

Publication Date:

September 1, 2007

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

I study the link between ethnic diversity, democracy, and corruption. In a static model, I show that contrary to conventional wisdom, corruption might emerge as a negative externality of democracy. This occurs through ethnicity, which appears as a rent-extracting technology in a democratic society. Extending the model into a dynamic framework, I find that this technology of extraction operates only at the early stage of democracy. Its impact tends to phase out as democracy matures. In other words, the model predicts that democracy exhibits a threshold effect on corruption.

Series:

Working Paper No. 07/218

Subject:

English

Publication Date:

September 1, 2007

ISBN/ISSN:

9781451867824/1018-5941

Stock No:

WPIEA2007218

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

22

Please address any questions about this title to publications@imf.org