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We investigate the effects of ethnic diversity on economic growth in the People’s Republic of China. Based on provincial data from 1982 to 2007, we find a negative relationship between ethnic diversity and economic growth across Chinese provinces supporting existing cross‐country studies such as Alesina et al. (2003). According to our estimations, going from complete ethnic homogeneity to complete ethnic heterogeneity reduces the growth rate between 2 percentage points and 2.5 percentage points in China, depending on the ethnic diversity index used.
Dincer et al. (Tue,) studied this question.