Work detail

The Impact of Ethnic Diversity on Institutions and Economic Development in Former Yugoslavia

Author: Bc. Miran Kaltak
Year: 2019 - summer
Leaders: PhDr. Jiří Schwarz Ph.D.
Work type: Bachelors
Language: English
Pages: 54
Awards and prizes:
Abstract: The aim of the thesis was to conduct a research on impact of ethnic diversity on the economic
growth of the countries of ex-Yugoslavia. The main hypothesis was that ethnic diversity affects
economic growth. The research was done by using two different methods: a) calculating ethnic
fractionalization index and GDP per capita; b) analyzing institutions as channels through which
ethnic diversity effects economic growth.
The results obtained within the first model demonstrated that diversity negatively influences
economic growth. Still, no reliable conclusions could be made, due to low variability in data, short
time frame considered and lack of regular data collection. Therefore, the second method reviewed
institutions as a channel through which ethnic diversity affects economic growth. The conclusion
of this model was that, ethnic diversity mainly has negative impact on the indicators reviewed,
which then results in slower economic growth.
The results of the research showed that ethnic heterogeneity is an important element in economic,
political, institutional and social life of a country. It can be concluded that ethnic diversity is an
important factor that should be taken into consideration when doing economic planning in a
country as it has direct and, very often, strong impact on economic growth.


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