IDEAS home Printed from https://ideas.repec.org/a/bla/scandj/v121y2019i1p153-181.html
   My bibliography  Save this article

Value Diversity and Regional Economic Development

Author

Listed:
  • Sjoerd Beugelsdijk
  • Mariko J. Klasing
  • Petros Milionis

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 and poorer public goods provision. These patterns are robust even when diversity is measured on the basis of values expressed by emigrants residing outside their region of origin.

Suggested Citation

  • Sjoerd Beugelsdijk & Mariko J. Klasing & Petros Milionis, 2019. "Value Diversity and Regional Economic Development," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 153-181, January.
    • Handle: RePEc:bla:scandj:v:121:y:2019:i:1:p:153-181
    DOI: 10.1111/sjoe.12253
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/sjoe.12253
    Download Restriction: no
    File URL: https://libkey.io/10.1111/sjoe.12253?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Assar Lindbeck & Sten Nyberg & Jörgen W. Weibull, 1999. "Social Norms and Economic Incentives in the Welfare State," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 1-35.
    2. Andrea Ichino & Giovanni Maggi, 2000. "Work Environment and Individual Background: Explaining Regional Shirking Differentials in a Large Italian Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 1057-1090.
    3. Edward Glaeser & Giacomo Ponzetto & Andrei Shleifer, 2007. "Why does democracy need education?," Journal of Economic Growth, Springer, vol. 12(2), pages 77-99, June.
    4. Lindqvist, Erik & Östling, Robert, 2010. "Political Polarization and the Size of Government," American Political Science Review, Cambridge University Press, vol. 104(3), pages 543-565, August.
    5. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    6. Raymond Fisman & Edward Miguel, 2007. "Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1020-1048, December.
    7. Shawn Cole & Xavier Gine & Jeremy Tobacman & Petia Topalova & Robert Townsend & James Vickery, 2013. "Barriers to Household Risk Management: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 104-135, January.
    8. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    9. Carl-Johan Dalgaard & Ola Olsson, 2013. "Why Are Rich Countries More Politically Cohesive?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(2), pages 423-448, April.
    10. Quamrul Ashraf & Oded Galor, 2008. "Human Genetic Diversity and Comparative Economic Development," 2008 Meeting Papers 617, Society for Economic Dynamics.
    11. Stelios Michalopoulos, 2012. "The Origins of Ethnolinguistic Diversity," American Economic Review, American Economic Association, vol. 102(4), pages 1508-1539, June.
    12. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    13. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 469-530.
    14. Alois Stutzer & Rafael Lalive, 2004. "The Role of Social Work Norms in Job Searching and Subjective Well-Being," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 696-719, June.
    15. Adam Przeworski & Fernando Limongi, 1993. "Political Regimes and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 51-69, Summer.
    16. Assar Lindbeck & Sten Nyberg, 2006. "Raising Children to Work Hard: Altruism, Work Norms, and Social Insurance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1473-1503.
    17. Yuriy Gorodnichenko & Gerard Roland, 2021. "Culture, institutions and democratization," Public Choice, Springer, vol. 187(1), pages 165-195, April.
    18. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
    19. Alessandra Fogli & Raquel Fernandez, 2009. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 146-177, January.
    20. Yann Algan & Pierre Cahuc, 2005. "The Roots of Low European Employment: Family Culture?," NBER Chapters, in: NBER International Seminar on Macroeconomics 2005, pages 65-109, National Bureau of Economic Research, Inc.
    21. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    22. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, vol. 21(2), pages 301-324, June.
    23. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    24. Beugelsdijk,Sjoerd & Maseland,Robbert, 2014. "Culture in Economics," Cambridge Books, Cambridge University Press, number 9781107684614.
    25. Desmet, Klaus & Ortuño-Ortín, Ignacio & Wacziarg, Romain, 2012. "The political economy of linguistic cleavages," Journal of Development Economics, Elsevier, vol. 97(2), pages 322-338.
    26. Francesco Giavazzi & Fabio Schiantarelli & Michel Serafinelli, 2013. "Attitudes, Policies, And Work," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1256-1289, December.
    27. Nicole M Fortin, 2005. "Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(3), pages 416-438, Autumn.
    28. Gianmarco I.P. Ottaviano & Giovanni Peri, 2021. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 7, pages 187-222, World Scientific Publishing Co. Pte. Ltd..
    29. Amparo Castello & Rafael Domenech, 2002. "Human Capital Inequality and Economic Growth: Some New Evidence," Economic Journal, Royal Economic Society, vol. 112(478), pages 187-200, March.
    30. Ager, Philipp & Brückner, Markus, 2013. "Cultural diversity and economic growth: Evidence from the US during the age of mass migration," European Economic Review, Elsevier, vol. 64(C), pages 76-97.
    31. Nicholas Charron & Lewis Dijkstra & Victor Lapuente, 2015. "Mapping the Regional Divide in Europe: A Measure for Assessing Quality of Government in 206 European Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(2), pages 315-346, June.
    32. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
    33. Erzo F. P. Luttmer & Monica Singhal, 2011. "Culture, Context, and the Taste for Redistribution," American Economic Journal: Economic Policy, American Economic Association, vol. 3(1), pages 157-179, February.
    34. Nicholas Charron & Lewis Dijkstra & Victor Lapuente, 2015. "Erratum to: Mapping the Regional Divide in Europe: A Measure for Assessing Quality of Government in 206 European Regions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 1059-1059, December.
    35. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    36. repec:bla:econom:v:61:y:1994:i:242:p:191-211 is not listed on IDEAS
    37. Kevin Y Au, 1999. "Intra-cultural Variation: Evidence and Implications for International Business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(4), pages 799-812, December.
    38. Nils B. Weidmann & Jan Ketil Roslashd & Lars-Erik Cederman, 2010. "Representing ethnic groups in space: A new dataset," Journal of Peace Research, Peace Research Institute Oslo, vol. 47(4), pages 491-499, July.
    39. Tate, Geoffrey & Yang, Liu, 2015. "Female leadership and gender equity: Evidence from plant closure," Journal of Financial Economics, Elsevier, vol. 117(1), pages 77-97.
    40. Holger Stichnoth & Karine Van der Straeten, 2013. "Ethnic Diversity, Public Spending, And Individual Support For The Welfare State: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 364-389, April.
    41. Fearon, James D, 2003. "Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June.
    42. Samuel Bentolila & Andrea Ichino, 2008. "Unemployment and consumption near and far away from the Mediterranean," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 255-280, April.
    43. Paola Giuliano & Antonio Spilimbergo, 2014. "Growing up in a Recession," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 787-817.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Despina Gavresi & Anastasia Litina & George Tsiachtsiras, 2022. "Railways and Roadways to Trust," Discussion Paper Series 2022_08, Department of Economics, University of Macedonia, revised Sep 2022.
    2. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    3. Valeriy Chichkanov & Lyubov Belyaevskaya-Plotnick, 2018. "Priority Development Areas in the Context of the Economic Security of Macro-Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 227-242.
    4. David C Maré & Jacques Poot, 2022. "Accounting for social difference when measuring cultural diversity," Working Papers 22_04, Motu Economic and Public Policy Research.
    5. ten Kate, Fabian & Klasing, Mariko J. & Milionis, Petros, 2023. "Societal diversity, group identities and their implications for tax morale," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 1048-1067.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alesina, Alberto & Giuliano, Paola, 2014. "Family Ties," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 177-215, Elsevier.
    2. Joseph Flavian Gomes, 2020. "The health costs of ethnic distance: evidence from sub-Saharan Africa," Journal of Economic Growth, Springer, vol. 25(2), pages 195-226, June.
    3. Assaf Sarid & Oded Galor, "undated". "Geographical Origins and Economic Consequences of Language Structures," Working Papers WP2017/4, University of Haifa, Department of Economics.
    4. Beugelsdijk, Sjoerd & Klasing, Mariko J., 2016. "Diversity and trust: The role of shared values," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 522-540.
    5. Oded Galor & Omer Ozak & Assaf Sarid, 2016. "Origins and Consequences of Lanquage Structures," Working Papers 2016-7, Brown University, Department of Economics.
    6. Gradstein, Mark & Justman, Moshe, 2019. "Cultural interaction and economic development: An overview," European Journal of Political Economy, Elsevier, vol. 59(C), pages 243-251.
    7. Cemal Eren Arbatlı & Quamrul H. Ashraf & Oded Galor & Marc Klemp, 2020. "Diversity and Conflict," Econometrica, Econometric Society, vol. 88(2), pages 727-797, March.
    8. Alberto Alesina & Stelios Michalopoulos & Elias Papaioannou, 2016. "Ethnic Inequality," Journal of Political Economy, University of Chicago Press, vol. 124(2), pages 428-488.
    9. Akbari, Mahsa & Bahrami-Rad, Duman & Kimbrough, Erik O., 2019. "Kinship, fractionalization and corruption," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 493-528.
    10. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," Post-Print halshs-00754788, HAL.
    11. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    12. Oded Galor & Ömer Özak & Assaf Sarid, 2018. "Geographical Origins of Language Structures," Departmental Working Papers 1801, Southern Methodist University, Department of Economics.
    13. Ozbugday, Fatih Cemil, 2019. "Kültür ve Ekonomik Başarı [Culture and Economic Success]," MPRA Paper 96734, University Library of Munich, Germany.
    14. Harry Pickard, 2020. "Explaining fiscal decentralization and the role of ethnic Diversity," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(5), pages 469-485, November.
    15. Hodler, Roland & Valsecchi, Michele & Vesperoni, Alberto, 2021. "Ethnic geography: Measurement and evidence," Journal of Public Economics, Elsevier, vol. 200(C).
    16. Bluhm, Richard & Thomsson, Kaj, 2020. "Holding on? Ethnic divisions, political institutions and the duration of economic declines," Journal of Development Economics, Elsevier, vol. 144(C).
    17. Victor Ginsburgh & Shlomo Weber, 2016. "Linguistic Diversity, Standardization, and Disenfranchisement: Measurement and Consequences," ULB Institutional Repository 2013/277407, ULB -- Universite Libre de Bruxelles.
    18. Reynal-Querol, Marta & García-Montalvo, José, 2017. "Ethnic Diversity and Growth: Revisiting the Evidence," CEPR Discussion Papers 12400, C.E.P.R. Discussion Papers.
    19. Javier Mejia, 2018. "Social Interactions and Modern Economic Growth," Documentos CEDE 16379, Universidad de los Andes, Facultad de Economía, CEDE.
    20. Falk, A. & Becker, A. & Dohmen, T.J. & Enke, B. & Huffman, D. & Sunde, U., 2015. "The nature and predictive power of preferences: Global evidence," Research Memorandum 039, Maastricht University, Graduate School of Business and Economics (GSBE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scandj:v:121:y:2019:i:1:p:153-181. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.