Cultural Diversity and Economic Performance: Evidence from European Regions

Elena Bellini, Gianmarco Ottaviano, Dino Pinelli and Giovanni Prarolo ()
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Elena Bellini: FEEM
Dino Pinelli: FEEM

A chapter in Geography, Institutions and Regional Economic Performance, 2013, pp 121-141 from Springer

Abstract: Abstract We investigate the relationship between diversity and productivity in Europe using an original dataset that covers the NUTS three regions of 12 European countries. In so doing, we follow the empirical methodology developed by Ottaviano and Peri (J Econ Geogr 6:9–44, 2006). The main idea is that, as cultural diversity may affect both production and consumption through positive or negative externalities, the estimation of both price and income equations is needed to identify the dominant effect. Based on this methodology, we find that diversity is positively correlated with productivity. IV estimates confirm the results, suggesting that causation runs from the former to the latter.

Keywords: Cultural Diversity; Productivity; European regions (search for similar items in EconPapers)
Date: 2013
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Related works:
Working Paper: Cultural Diversity and Economic Performance: Evidence from European Regions (2009)
Working Paper: Cultural diversity and economic performance: Evidence from European regions (2008)
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DOI: 10.1007/978-3-642-33395-8_7

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