City Research Online

Abstract

In recent years, regions have become increasingly diverse in terms of their population and economic activities. However, whether regional diversity or homogeneity corresponds to better economic performance is still a scholarly controversial subject with inconclusive evidence. Therefore, this thesis aims to identify missing links that may provide clues to explain the inconsistent findings regarding the economic impact of regional diversity, in terms of population and economic activities.

The first and second chapters of this thesis focus on diversity in people. While the first chapter examines the economic consequences of a high-diversity population, the second chapter investigates the consequences of a low-diversity (homogeneous) population, using a case in which in-migrants increase population homogeneity in their destination regions. The first chapter finds that the effect of population diversity is unpromising in regions with low openness toward diversity. The second chapter reveals that highly educated locals living in highly educated regions may not benefit significantly from the influx of highly educated inmigrants, due to an increase in homogeneity within the local population.

In the literature, it is widely acknowledged that in-migrants contribute to increased population diversity in their destination areas, and this increased population diversity corresponds to better economic performance. However, the findings of chapters 1 and 2 show that in-migrants can often increase population homogeneity rather than diversity in their destinations, and the economic impact of population diversity is also conditional on the region’s openness to diversity.

The third chapter focuses on the economic activities of people and demonstrates that not only the composition of the population (who they are) but also the economic activities of the population (what they do) are important in regional economic output. This is because people’s economic activities within a specific geographic area determine the economic output of that area. Moreover, the findings reveal that the concentration of economic activity (low diversity in economic activities) yields more positive economic results when the activity involves low value goods or intangible service.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance
Departments:	Bayes Business School > Bayes Business School Doctoral Theses Bayes Business School > Management Doctoral Theses

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