Diversity–development nexus: Why determine economic development without diversity? A comparative analysis between developed and developing countries. Issue 1 (8th January 2021)

• Record Type: Journal Article
• Authors: Amin, Saqib
• Is Part Of: Society and business review. Volume 16:Issue 1(2021)
• Page Start: 134
• Page End: 150
• Publication Date: 2021-01-08
• Subjects: Economic development -- Ethnic diversity -- Religious diversity -- Cohesive society; O11 -- F10 -- O15; Social responsibility of business -- Periodicals; Industries -- Social aspects -- Periodicals; 658.408
• DOI: 10.1108/SBR-01-2020-0007
• Languages: English
• ISSNs: 1746-5680

Abstract

Abstract : Purpose: Diversity plays a vital role in the sustainable development of any country. Discrimination, segregation and bigotry are rampant causes of social evil and do great harm to our society. This study aims to investigate whether ethnic and religious diversity affects the country's well-being or not, via a comparative analysis between developing and developed countries. Design/methodology/approach: This study used a generalized method of moments technique for empirical analysis of 158 developing and developed countries. For measurement of ethnic and religious diversity, this study used ethnic fractionalization index of Alesina (2003). Findings: The empirical findings indicate that ethnic and religious diversity both increases the economic prosperity for developed countries, and alternatively, it makes it more miserable for developing countries. This study suggests that organizing a diverse society is a difficult task; thus, developing countries need to promote a cohesive society like developed countries by providing equal, secure and peaceful opportunity to get fruitful results of diverse populations. Originality/value: This study investigates a comparative analysis between developing and developed countries regarding impact of ethnic and religious diversity on economic development.