Does Cultural Diversity Increase the Rate of Entrepreneurship?

33 Pages Posted: 25 Jan 2013

See all articles by Russell S. Sobel

Russell S. Sobel

The Citadel - School of Business

Nabamita Dutta

University of Wisconsin, La Crosse

Sanjukta Roy

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: 2010

Abstract

In the economic development literature, cultural diversity has been shown to have a positive impact on economic outcomes. A culturally diverse society or interaction among different cultures encourages exchange and competition and generates efficient outcome. Our paper hypothesizes that a culturally diverse society has a positive impact on the rate of entrepreneurship. We show that in the United States, a country with good institutions, that cultural diversity or greater cultural capital has clear economic benefits — it increases the rate of entrepreneurship.

Keywords: cultural diversity, entrepreneurship

JEL Classification: L26, 012, 017, P12

Suggested Citation

Sobel, Russell S. and Dutta, Nabamita and Roy, Sanjukta, Does Cultural Diversity Increase the Rate of Entrepreneurship? (2010). Review of Austrian Economics, Vol. 15, No. 3, 2010. Available at SSRN: https://ssrn.com/abstract=2206461

Russell S. Sobel

The Citadel - School of Business ( email )

171 Moultrie St.
Charleston, SC 29409
United States

Nabamita Dutta (Contact Author)

University of Wisconsin, La Crosse ( email )

Dept. of Economics, 1725 State Street
La Crosse, WI 54601
United States
6087855294 (Phone)

Sanjukta Roy

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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