Work

Ethnic Diversity and Growth: Revisiting the Evidence

Year: 2020

Type: article

Abstract: The relationship between ethnic heterogeneity and economic growth is complex. Empirical research working with cross-country data finds a negative, or statistically insignificant, relationship. However, analysis at the city level finds a positive effect of diversity on wages and productivity. Generally there is a trade-off between the economic benefits of diversity and the costs of heterogeneity. Using cells of fixed size, we find that the relationship between diversity and growth is positive for small geographical areas. In the case of Africa, we argue that the explanation is the increase in trade at the boundaries between ethnic groups due to ethnic specialization.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_00901

Authors: José G. Montalvo, Marta Reynal-Querol

Institutions: Universitat Pompeu Fabra, Institut de Política Econòmica i Governança, Institució Catalana de Recerca i Estudis Avançats

Language: English

Topic: Culture, Economy, and Development Studies

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: green

OpenAlex ID: W2767570287

FWCI: 6.78

Cites: 38

Cited by: 36

Related to: 10