ABSTRACT
To assess the impact of etl11lolinguistic diversity we add the threc m~jor di,'ersity indexes in scction (b) of the tahle. Doing so more than doubles the ('((uations' R:1 values, raises the magnitudes of the I'xtent-oJ:'the-market "ariahles, and the coeJllcient on initial income is still indistinguishahle from zero (although its estimated sign has turned nt'gatiw as the Solow-Swan theory predicts). Diversity itsdfhas a significantly negative coellicient, hut the magnitude is extremely small: a I per cent higher level of heterogent'ity is associated with a decrcase in the average annual growth rate ofO.02G to 0'()36 per cent (between two and JelUr one hundredths of I per cent). In contrast, the mag-nitude of the coeJlicient on population is relatiwly large: incorporating an additional million people \ .... ould increase growth by 0.4 to 0.9 one hundredths of I per cent. To take an arhitrary example, if Canada had joined the United States in I9GO, Canada's additional population of I B4 million would have added around one percentage point to former Canadians' average annual g-rowth ratc, while former CS citizcns g-ained one tenth as many people and would haw gaincd a tcnth of 1 per cent in annual growth.
