Does Cultural Diversity Increase the Rate of Entrepreneurship?

In the economic development literature, cultural diversity (for example, ethnolinguistic fractionalization) has been shown to have a negative impact on economic outcomes in many underdeveloped countries. We hypothesize that the impact of diversity on economic performance depends on the quality of a...

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Main Authors:	Sobel, Russell S., Dutta, Nabamita, Roy, Sanjukta
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Institutions: Design, Formation, and Operations D020 Entrepreneurship L260 Economic Sociology Economic Anthropology Social and Economic Stratification Z130
Online Access:	http://hdl.handle.net/10986/4954

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spelling	okr-10986-49542021-04-23T14:02:20Z Does Cultural Diversity Increase the Rate of Entrepreneurship? Sobel, Russell S. Dutta, Nabamita Roy, Sanjukta Institutions: Design, Formation, and Operations D020 Entrepreneurship L260 Economic Sociology Economic Anthropology Social and Economic Stratification Z130 In the economic development literature, cultural diversity (for example, ethnolinguistic fractionalization) has been shown to have a negative impact on economic outcomes in many underdeveloped countries. We hypothesize that the impact of diversity on economic performance depends on the quality of a country's institutions. Under bad institutions diversity leads to conflict and expropriation, while under good institutions diversity leads to economic progress. A culturally diverse society or interaction among different cultures encourages exchange of, and competition between ideas and different world views. Under good institutions, this amalgamation of ideas and views leads to greater entrepreneurial initiatives. We show that higher levels of cultural diversity increase the rate of entrepreneurship in the presence of good institutions using evidence from the USA. 2012-03-30T07:30:33Z 2012-03-30T07:30:33Z 2010 Journal Article Review of Austrian Economics 08893047 http://hdl.handle.net/10986/4954 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article United States
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Institutions: Design, Formation, and Operations D020 Entrepreneurship L260 Economic Sociology Economic Anthropology Social and Economic Stratification Z130
spellingShingle	Institutions: Design, Formation, and Operations D020 Entrepreneurship L260 Economic Sociology Economic Anthropology Social and Economic Stratification Z130 Sobel, Russell S. Dutta, Nabamita Roy, Sanjukta Does Cultural Diversity Increase the Rate of Entrepreneurship?
geographic_facet	United States
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	In the economic development literature, cultural diversity (for example, ethnolinguistic fractionalization) has been shown to have a negative impact on economic outcomes in many underdeveloped countries. We hypothesize that the impact of diversity on economic performance depends on the quality of a country's institutions. Under bad institutions diversity leads to conflict and expropriation, while under good institutions diversity leads to economic progress. A culturally diverse society or interaction among different cultures encourages exchange of, and competition between ideas and different world views. Under good institutions, this amalgamation of ideas and views leads to greater entrepreneurial initiatives. We show that higher levels of cultural diversity increase the rate of entrepreneurship in the presence of good institutions using evidence from the USA.
format	Journal Article
author	Sobel, Russell S. Dutta, Nabamita Roy, Sanjukta
author_facet	Sobel, Russell S. Dutta, Nabamita Roy, Sanjukta
author_sort	Sobel, Russell S.
title	Does Cultural Diversity Increase the Rate of Entrepreneurship?
title_short	Does Cultural Diversity Increase the Rate of Entrepreneurship?
title_full	Does Cultural Diversity Increase the Rate of Entrepreneurship?
title_fullStr	Does Cultural Diversity Increase the Rate of Entrepreneurship?
title_full_unstemmed	Does Cultural Diversity Increase the Rate of Entrepreneurship?
title_sort	does cultural diversity increase the rate of entrepreneurship?
publishDate	2012
url	http://hdl.handle.net/10986/4954
_version_	1764393375798132736

Does Cultural Diversity Increase the Rate of Entrepreneurship?

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