Genetic diversity and economic development: Evidence from Chinese provinces

This paper examines whether the genetic patterns among Chinese provinces are good predictors of provincial prosperity. Asfraf & Galor (2013) found genetic diversity has two offsetting impacts on prosperity. It lowers the interpersonal trust, which weakens collective actions. But it also brings a variety of ideas and abilities that are conducive to innovation. Asfraf-Galor found a hump-shaped relationship between genetic diversity and prosperity. Our paper finds genetic diversity has a negative impact not only on trust but also on innovative activities among Chinese provinces. Hence, only part of Ashraf-Galor's predictions is supported. A collectivist culture might explain this difference.