Diversity–development nexus: Why determine economic development without diversity? A comparative analysis between developed and developing countries
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.
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The results are consistent with theories suggesting that ethnic diversity may pose challenges to the development of strong public institutions in developing countries.
“The results are consistent with theories suggesting that ethnic diversity may pose challenges to the development of strong public institutions in developing countries (Amin 2021;Väyrynen 2003).”
From Diversity Matters in the World of Finance: Does Ethnic and Religious Diversity Hinder Financial Development in Developing Countries? (2025) · cites this paper as Amin 2021
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- Authors
- Amin, S.
- Affiliations
- National College of Business Administration and Economics (PK)
- Corresponding author
- Amin, Saqib
- ORCID
- Amin, Saqib
- Venue
- Society and Business Review
- Publisher
- Emerald
- Published
- 2021-01-08
- Volume
- 16
- Issue
- 1
- Pages
- 134-150
- ISSN
- 1746-5680 (ISSN-L)
- OpenAlex
- W3121105074
- Cited by
- 9
- References
- 71
- Citations by year
- 2026: 1 · 2025: 4 · 2024: 1 · 2023: 1 · 2022: 2
- FWCI
- 1.58
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Society and Business Review (publishedVersion)
- Topics
- Social Sciences › Demography › Culture, Economy, and Development Studies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Technological Innovation
- Physical Sciences › Computer Science › Information Systems › Economic Growth and Development
- Keywords
- ethnic diversity, religious diversity, economic development, ethnic fractionalization, developed and developing countries, social cohesion, discrimination, sustainable development, national well-being
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