2018
DOI: 10.1111/sjoe.12253
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Value Diversity and Regional Economic Development

Abstract: We investigate the link between culture and regional economic development within European countries. Considering a variety of cultural values, we provide evidence that it is the degree of diversity in these values at the regional level that strongly correlates with economic performance, rather than the prevalence of specific values. In particular, we show that greater value diversity is negatively associated with regional economic performance within countries, which also relates to lower institutional quality … Show more

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Cited by 31 publications
(27 citation statements)
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“…14 In addition to social capital, the analysis also considers the degree of ethnic heterogeneity by including an ethnic fractionalization index, as in Gennaioli et al (2013). This is motivated by the fact that higher diversity is generally associated with lower levels of economic development (Alesina & Zhuravskaya, 2011;Beugelsdijk, Klasing & Milionis, 2017 the legacy of history on current TFP differences, we consider each region's historical urban density in 1800 based on data from Bairoch, Batou, and Chevre (1988). We also consider for each region how many cities were historically located on the crossing of two or more Roman roads, which Bosker et al (2013) have shown to be correlated with historical development over the past two millennia.…”
Section: Explanatory Variablesmentioning
confidence: 99%
“…14 In addition to social capital, the analysis also considers the degree of ethnic heterogeneity by including an ethnic fractionalization index, as in Gennaioli et al (2013). This is motivated by the fact that higher diversity is generally associated with lower levels of economic development (Alesina & Zhuravskaya, 2011;Beugelsdijk, Klasing & Milionis, 2017 the legacy of history on current TFP differences, we consider each region's historical urban density in 1800 based on data from Bairoch, Batou, and Chevre (1988). We also consider for each region how many cities were historically located on the crossing of two or more Roman roads, which Bosker et al (2013) have shown to be correlated with historical development over the past two millennia.…”
Section: Explanatory Variablesmentioning
confidence: 99%
“…Algan et al (2016) exploit the rules of public housing allocation in France to establish that ethnic diversity measured at the apartment block level induces "social anomie" leading to increased vandalism and lower levels of building maintenance. Beugelsdijk et al (2018) establish that greater diversity of cultural values is negatively associated with economic performance and local public goods provision in a sample of European regions.…”
Section: Establish a Negative Relationship Between Ethnic Diversity Amentioning
confidence: 88%
“…This is something that is difficult to understand, especially as the quality of data on values and social capital has kept on improving in recent decades. The few exceptions in this respect (e.g., Beugelsdijk & Klasing, 2016; Beugelsdijk, Klasing, & Milionis, 2019; Cortinovis, Xiao, Boschma, & van Oort, 2017) provide interesting insights, but still fall far short of the attention that the role of informal institutions for economic development deserves.…”
Section: Gaps In Our Knowledgementioning
confidence: 99%