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Volume 103, Issue 3
July 2021
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July 08 2021
José G. Montalvo,
José G. Montalvo
Universitat Pompeu Fabra, BarcelonaGSE, and IPEG
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Marta Reynal-Querol
Marta Reynal-Querol
ICREA, Univ. Pompeu Fabra, IPEG, and BarcelonaGSE
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Author and Article Information
José G. Montalvo
Universitat Pompeu Fabra, BarcelonaGSE, and IPEG
Marta Reynal-Querol
ICREA, Univ. Pompeu Fabra, IPEG, and BarcelonaGSE
We thank Daron Acemoglu, Alberto Alesina, Tim Besley, Klaus Desmet, Ruben Durante, Oded Galor, Saumitra Jha, Massimo Morelli, Gerard Padro, Elias Papaioannou, Luigi Pascali, Felipe Valencia, Hans-Joachim Voth, and, especially, Antonio Ciccone, Stelios Michalopoulos, and Roman Wacziarg for their helpful comments. We also thank the participants in the Bocconi Workshop on Conflict, the Meeting of the European Public Choice Society, the EPCS of Groningen, the Berlin Workshop on Advances on the Political Economy of Conflict and Redistribution III, the Invited Session on Political Economy of Development at the EEA Meetings of 2015 in Mannheim, the Yale University Workshop on the Political Economy of Social Conflict, and the NBER Summer Institute. We have also benefited from the comments of participants in seminars at Stanford GSB, Oxford, LSE, Warwick, Bonn, Stockholm, UPF and CREI. Financial support from the European Research Council, the Spanish National Science Foundation, the Barcelona GSE Research Network, and the government of Catalonia is gratefully acknowledged.
A supplemental appendix is available online at https://doi.org/10.1162/rest_a_00901.
Received: January 11 2019
Accepted: November 18 2019
Online ISSN: 1530-9142
Print ISSN: 0034-6535
© 2020 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
2020
The President and Fellows of Harvard College and the Massachusetts Institute of Technology
The Review of Economics and Statistics (2021) 103 (3): 521–532.
Article history
Received:
January 11 2019
Accepted:
November 18 2019
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Citation
José G. Montalvo, Marta Reynal-Querol; Ethnic Diversity and Growth: Revisiting the Evidence. The Review of Economics and Statistics 2021; 103 (3): 521–532. doi: https://doi.org/10.1162/rest_a_00901
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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.
© 2020 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
2020
The President and Fellows of Harvard College and the Massachusetts Institute of Technology
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