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Is Diversity Bad for Economic Growth? Evidence from State-level Data in the US

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Date

2009

Authors

Ratna, Nazmun N.
Kompas, Thomas
Grafton, Quentin

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

The paper examines the macroeconomic effects of social diversity in the United States. Employing a cross-sectional dataset for 48 states, we find mixed empirical evidence for the impact of diversity on Gross State Product (GSP) per capita growth: racial diversity reduces GSP growth, while linguistic diversity raises GSP growth. Our findings suggest that because English is used frequently by non-native speakers barriers to communications based on race are more pronounced and enduring than those based on linguistic differences. The results provide a justification for establishing 'weak ties' across diverse racial groups as a means to enhance economic performance.

Description

Keywords

Keywords: Economic growth; Linguistic diversity; Racial diversity

Citation

URI

http://hdl.handle.net/1885/18077

Collections

ANU Research Publications

Source

Journal of Socio-Economics

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

DOI

10.1016/j.socec.2009.05.006

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