Ethnic Diversity and Growth: Revisiting the Evidence

  title={Ethnic Diversity and Growth: Revisiting the Evidence},
  author={Jose G Montalvo and Marta Reynal-Querol},
  journal={Review of Economics and Statistics},
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… 

Immigration, diversity and institutions

This paper examines the relationship between immigration and host countries’ institutional quality, using international migration data, and two composite metrics, encompassing multiple dimensions of

Ethnic Diversity and Informal Work in Ghana

Abstract We present the first study that examines the effects of ethnic diversity on informal work. Using two waves of data from the Ghana Socioeconomic Panel Survey, we find that ethnic diversity is

National heterogeneity in the Russian regions: Assessment, change, impact on economic development

The paper provides quantitative estimates of national heterogeneity in the Russian regions, using indices of fractionalization and polarization, taking into account the linguistic distance between

Ethnic Diversity, Local Redistribution and Income Inequality: An Empirical Analysis Applied to Mexican Municipalities

Abstract This article examines the relationship between ethnic diversity, redistributive policies and income inequality in the context of Mexican municipalities. Although we primarily focus on income

Influence of Fiscal Decentralisation and Ethnic Diversity on Educational Outcomes – Evidence from Indonesia

The main objective of this paper is to clarify the influence of fiscal decentralisation and ethnic diversity on Indonesia’s educational outcomes using Indonesian provincial-level data from 2001 to

Divided We Stay Home: Social Distancing and Ethnic Diversity

It is found that mobility reduction following the first local COVID-19 case was stronger in Russian cities with higher ethnic fractionalization and xenophobia and the United States data on mobility produces similar results.

Diversity Deficit and Scale-Flip

Abstract We present a comprehensive multi-scale test of the diversity-deficit hypothesis that posits a negative association between diversity and development. We develop a ‘scale-flip hypothesis’

Vanishing borders: ethnicity and trade costs at the origin of the Yugoslav market

This article exploits the creation of a paradigmatic multi-ethnic state, Yugoslavia, to examine if, to what extent, and why the effect of ethnic ties on trade costs changes over time. We compile and

Fractionalization, Polarization and Banking Stability in Africa

I examine the impact of diversity (ethnic and religious fractionalization and polarization) on banking stability in Sub-Saharan Africa (SSA). Using data from 1996 to 2014, I employ the system




The relationship between ethnic heterogeneity and economic growth is complex. Empirical research working with cross-country data finds a negative, or statistically insignificant, relationship.

How Ethnic Diversity Affects Economic Growth

Ethnic Diversity and Economic Performance

We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on communities of different size and organizational

Ethnic diversity and economic growth in China

We investigate the effects of ethnic diversity on economic growth in the People’s Republic of China. Based on provincial data from 1982 to 2007, we find a negative relationship between ethnic

Africa's Growth Tragedy: Policies and Ethnic Divisions

Explaining cross-country differences in growth rates requires not only an understanding of the link between growth and public policies, but also an understanding of why countries choose different

Ethnic Diversity and Employment Growth in English Cities

  • N. Lee
  • Economics
    Urban studies
  • 2011
The evidence suggests that cities with a high proportion of their populations born abroad in 1981 grew faster in the subsequent 10 years, and that towns with a large number of migrants saw higher employment growth in the 1990s, but that ethnically diverse cities were less successful.

Cities and Cultures

We investigate the existence of wage premium due to cultural diversity across US cities. Using census data from 1970 to 1990, we find that at the urban level richer diversity is systematically

Economic Impacts of Cultural Diversity in the Netherlands: Productivity, Utility, and Sorting

This discussion paper resulted in an article in the Journal of Regional Science (2013). Volume 53, issue 1, pages 8-36. This paper identifies the role of cultural diversity in explaining spatial

Borders, Ethnicity and Trade