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Value Diversity and Regional Economic Development

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  • 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.

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  • 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
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    2. 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.
    3. David C Maré & Jacques Poot, 2022. "Accounting for social difference when measuring cultural diversity," Working Papers 22_04, Motu Economic and Public Policy Research.
    4. 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.
    5. 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.

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