Ethnic Diversity Management and Poverty in Developing Countries

The main objective of this research is to analyse the effect of ethnic diversity management on poverty in developing countries. The literature review explained the relationship between ethnic diversity management and poverty on the one hand and provided a measure of ethnic diversity management on the other. Based on a sample of 62 developing countries, empirical analysis with two-stage least square (2SLS) estimator shows that ethnic diversity management affects poverty in developing countries. Effective management of ethnic diversity leads to social cohesion and improves the monetary and non-monetary well-being of households. However, ineffective management of ethnic diversity is a source of social exclusion and conflict, with perverse effects on the standard of living and living conditions of households