Ethnic diversity and economic diversification: the case of Russian regions
Research Article
Acknowledgments
The study was carried out within the framework of the research plan of the Laboratory for Modeling Spatial Development of Territories of the Institute of Economics of the Ural Branch RAS for 2024.
How to Cite
Rozhina E.A., Vasilyeva R.I. Ethnic diversity and economic diversification: the case of Russian regions. Population. 2024. Vol. 27. No. 1. P. 82-94. DOI: https://doi.org/10.24412/1561-7785-2024-1-82-94 (in Russ.).
Abstract
Scientific researchers highlight the dependency of Russian economy on hydrocarbon industry that imposes higher risks for macroeconomic instability in the country during the global commodity prices volatility and geopolitical turmoil. Economic diversification is one of the most effective tools that can offset the effects of external shocks on the national economy. Ethnic minorities can potentially contribute to the economic diversification and sustainability of the national economy. They have their own religions and traditions, which make impact on production features and employment; many ethnic groups are mainly engaged in traditional economic activities. Their development can potentially cover some of the needs of the Russian market. However, this issue remains understudied. Therefore, the aim of the study is to assess the impact of ethnic diversity on the economic diversification of the Russian regions. For analysis we use panel data for 83 Russian regions over the period of 2000– 2020. Ethnic diversity is represented by ethnic fractionalization index, number of major religions and official languages, while the decomposition of the Theil index represents the measure of the economic diversification. Considering high heterogeneity of regional data, we implement quantile regression approach with fixed effects. The empirical evidence shows the absence of significant impact of the ethnic diversity on economic diversification. However, in the regions, where more religions are represented, the degree of economic diversification is higher. The results obtained expand the existing literature on the issue in the context of the Russian regions that can be used in development of strategic mechanisms for the state regulation in the field of support for ethnic minorities and reduction of the economic concentration in Russia.
Keywords:
ethnic minorities, ethnic fractionalization, major religions, economic diversification, quantile regression
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4. Gören E. How ethnic diversity affects economic growth. World Development. 2014. Vol. 59. P. 275–297.
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6. Montalvo J. G., Reynal-Querol M. Ethnic diversity and economic development. Journal of Development Economics. 2005. Vol. 76. No. 2. P. 293–323.
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11. Easterly W., Levine R. Africa’s growth tragedy: policies and ethnic divisions. The Quarterly Journal of Economics. 1997. Vol. 112. No. 4. P. 1203–1250. DOI: 10.1162/003355300555466
12. Dincer O. C., Wang, F. Ethnic diversity and economic growth in China. Journal of Economic Policy Reform. 2011. Vol. 14. No. 1. P. 1–10. DOI: 10.1080/17487870.2011.523985
13. Churchill S. A. Income and ethnic fractionalisation: Evidence from British microdata. Economic Issues. 2019. Vol. 24. No. 1. P. 21–34.
14. Montalvo J. G. Reynal-Querol M. Ethnic diversity and economic development. Journal of Development Economics. 2005. Vol. 76. No. 2. P. 293–323. DOI: 10.1016/j.jdeveco.2004.01.002
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21. Nesena M. V. Vliyanije kul’turnogo raznoobraziya regionov Rossii na ekonomicheskije pokazateli. [Impact of cultural diversity of Russian regions on economic performance]. Obshchestvennyje nauki i sovremennost’. [Social Sciences and Contemporary World]. 2015. No. 5. P. 72–85. (in Russ.)
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24. Vasilyeva R. I., Vojtenkov V. A., Rozhina E. A., Urazbaeva A. R. Pokazateli ekonomicheskoj i eksportnoj diversifikatsii v regionah Rossijskoj Federatsii za 2000–2021gg. [Indicators of the economic and export diversification in the Russian Federation regions for 2000–2021]. Svidetel’stvo o gosudarstvennoj registratsii bazy dannyh № 2023621916. 2023. [Certificate of the state registration of the database № 2023621916]. 2023. (in Russ.)
25. Alesina A., Devleeschauwer A., Easterly W. et al. Fractionalization. Journal of Economic Growth. 2003. Vol. 8. P. 155–194. DOI: 10.1023/A:1024471506938
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27. Machado J. A., Silva J. S. Quantiles via moments. Journal of Econometrics. 2019. Vol. 213. No. 1. P. 145–173.
Article
Received: 20.09.2023
Accepted: 26.03.2024
Citation Formats
Other cite formats:
APA
Rozhina, E. A., & Vasilyeva, R. I. (2024). Ethnic diversity and economic diversification: the case of Russian regions. Population, 27(1), 82-94. https://doi.org/10.24412/1561-7785-2024-1-82-94
Section
DEMOGRAPHY: THEORY AND PRACTICE ISSUES
