Ethnic Diversity and Innovation in Developing Economies

It is well known that there is a significant negative correlation between ethnic diversity and economic development across countries. Countries that are divided by ethnic lines tend to have lower incomes, slower growth rates, and poorer ratings on standard human development indices. Although diversity may be socially costly, it may also be economically valuable. Diverse populations are more productive, more creative, and better at intellective tasks like problem-solving, prediction-generation, and decision- making—skills that are critical for innovation and entrepreneurship. This proposal describes a dissertation project that draws on insights from multiple disciplines to identify interventions that can enable multicultural groups, organizations, and communities in developing societies to realize the productivity gains from heterogeneity and stimulate development. Funding provided for this project would be used to support TGR/health fees and a stipend for the final year of my Ph.D. program, during which time I expect to complete the write-up of my dissertation.