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Total Factor Productivity, Per Capita Income and Social DivergenceR. Quentin GraftonAustralian National University (ANU) - Centre for Resource and Environmental Studies (CRES); Australian National University (ANU) - Crawford School of Economics and Government Stephen KnowlesUniversity of Otago - School of Business - Department of Economics P. Dorian OwenUniversity of Otago - School of Business - Department of Economics Economic Record, Vol. 80, No. 250, pp. 302-313, September 2004 Abstract: The paper introduces the concept of social divergence, defined as the social barriers to communication and exchange between individuals and groups within a society, and analyses its impact on total factor productivity and per capita income. Using a cross section of 27 developing countries, total factor productivity and per capita income are separately regressed on measures of social divergence that include the distribution of personal expenditures, ethnolinguistic diversity, religious diversity and an educational Gini coefficient. The results indicate that higher levels of social divergence are associated with both statistically and economically significantly lower levels of total factor productivity and per capita income.
Number of Pages in PDF File: 12 Accepted Paper SeriesDate posted: September 6, 2004Suggested CitationContact Information
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