Within – Country diversity and economic output: The role of financial development

IF 5 2区 经济学 Q1 ECONOMICS
Augustine Tarkom , Patrick Glavee , Nana Twum Owusu-Peprah , Ned Kock
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引用次数: 0

Abstract

This study investigates the relationship between within-country diversity, financial development, and economic output with a particular focus on the moderating role of financial development. Analyzing data from a diverse set of countries, we find that both religious and language diversity exhibit negative associations with economic performance. However, in emerging economies, a positive interaction between linguistic and religious diversity emerges. Notably, robust financial development positively moderates the relationship between diversity and economic output, with identified thresholds indicating a critical level necessary to mitigate the adverse consequences of cultural diversity. Our findings highlight the essential role of financial systems in fostering trust and promoting economic growth, particularly in high-diversity contexts. Our findings are robust to a battery of alternative tests. By emphasizing the importance of financial development in navigating within-country heterogeneities, this study offers valuable insights for policymakers seeking to foster inclusive and sustainable development strategies.

内部 - 国家多样性与经济产出:金融发展的作用
本研究探讨了国家内部多样性、金融发展和经济产出之间的关系,尤其关注金融发展的调节作用。通过分析来自不同国家的数据,我们发现宗教和语言多样性都与经济表现呈负相关。然而,在新兴经济体中,语言多样性和宗教多样性之间出现了正向互动。值得注意的是,稳健的金融发展能积极调节多样性与经济产出之间的关系,已确定的阈值表明了减轻文化多样性不利影响所需的临界水平。我们的研究结果凸显了金融体系在培养信任和促进经济增长方面的重要作用,尤其是在高度多元化的背景下。我们的研究结果在一系列替代性测试中都很稳健。通过强调金融发展在驾驭国内异质性方面的重要性,本研究为寻求促进包容性和可持续发展战略的政策制定者提供了宝贵的见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
9.60
自引率
4.90%
发文量
159
期刊介绍: Structural Change and Economic Dynamics publishes articles about theoretical, applied and methodological aspects of structural change in economic systems. The journal publishes work analysing dynamics and structural breaks in economic, technological, behavioural and institutional patterns.
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