... Denominator Effects: Another Look at Foreign Capital Penetration.” American Journal of Sociology 102(September):543-562 Easterly, William, and Ross Levine. 2001. “It’s Not Factor Accumulation: ... smaller. Autocratic countries, in contrast, tend not to reform, since Liberalization might reduce an autocrat’s freedom to impose arbitrary policies. Another possible political precondition for beneficial ... ethnic fractionalization (ELF60 or ETHFRAC). Let us note three possible design problems. The first is possible endogeneity in the relationships between growth and various independent variables....