Template-Type: ReDIF-Paper 1.0 Author-Name: Cong Wang Author-Name-First: Cong Author-Name-Last: Wang Author-Email: cong@sam.sdu.dk Author-Workplace-Name: Department of Border Region Studies, University of Southern Denmark Author-Name: Bodo Steiner Author-Name-First: Bodo Author-Name-Last: Steiner Author-Email: bsteiner@sam.sdu.dk Author-Workplace-Name: Department of Border Region Studies, University of Southern Denmark Title: Can ethnic-linguistic diversity explain cross-country differences in social capital formation? Abstract: Motivated by theoretical arguments that assert a negative impact of ethnolinguistic diversity on social capital, this paper aims to provide some empirical evidence on the relationship between the two variables. In particular, using a cross section sample of 68 developed and developing countries, this paper has found a significant negative effect of ethnolinguistic diversity on social capital. Countries with fractionalized ethnic and linguistic groups as captured by both log number of languages and Desmet et al. (2012) and La Porta et al. (1999)’s measures on linguistic diversity tend to have lower levels of social trust, fewer memberships in social organizations, deteriorated social norms and structure, hence, lower overall social capital stock. Length: 40 pages Creation-Date: 2015-03 File-URL: http://static.sdu.dk/mediafiles//F/4/4/%7BF44CE271-2CB9-4F50-83FB-0E268A21D61D%7D6-Cong-Steiner-2015-Social-capital.pdf File-Format: Application/pdf Number: 6 Classification-JEL: E0, D72, Z10 Keywords: Ethnic and Linguistic Diversity, Social Capital, Economic Growth Handle: RePEc:sdn:wpaper:6