DP6824 Human Genetic Diversity and Comparative Economic Development

Author(s): Quamrul Ashraf , Oded Galor

Publication Date: May 2008

Keyword(s): Comparative development , Human genetic diversity , Land productivity , Malthusian stagnation , Neolithic Revolution , Population density

JEL(s): N10 , N30 , N50 , O10 , O50 , Z10

Programme Areas: International Macroeconomics

Link to this Page: www.cepr.org/pubs/dps/DP6824.asp.asp

This research contributes to the understanding of human genetic diversity within a society as a significant determinant of its economic development. The hypothesis advanced and empirically examined in this paper suggests that there are socioeconomic trade-offs associated with genetic diversity within a given society. The investigation exploits an exogenous source of cross-country variation in genetic diversity by appealing to the "out of Africa" hypothesis of human origins to empirically establish a highly statistically significant and robust non-monotonic effect of genetic diversity on development outcomes in the pre-colonial era. Contrary to theories that reject a possible role for human genetics in influencing economic development, this study demonstrates the economic significance of diversity in genetic traits, while abstaining entirely from conceptual frameworks that posit a hierarchy of such traits in terms of their conduciveness to the process of economic development.