@TechReport{iza:izadps:dp17776, author={Kok, Chun Chee and Lim, Gedeon and Shariat, Danial and Siddique, Abu and Tsuda, Shunsuke}, title={Interethnic Proximity and Political Development}, year={2025}, month={Mar}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={17776}, url={https://www.iza.org/index.php/publications/dp17776}, abstract={We exploit a population resettlement program of ethnic minorities in Malaysia to identify long-run effects of interethnic proximity on economic and political development. From 1948 to 1951, the colonial government moved 500,000 rural Chinese into hundreds of isolated, mono-ethnic camps. In ethnic majority Malay communities adjacent to these camps, we find greater economic prosperity and lower vote shares for the ethno-nationalist Malay party. Effects are stronger in areas with historical, interethnic economic complementarities. Primary survey data suggests that trust-building and social integration were key channels. Our findings highlight the importance of persistent, localized contact in the co-evolution of economic and political development.}, keywords={Malaysia;development;political preference;ethnicity;Chinese}, }