This paper uses cross-country data from 1965 to 2008 to examine how ethnic heterogeneity affects the probability of technological disasters. Estimation results showed that ethnic heterogeneity increased the probability of technological disasters.

Empirical results from a random-effects regression model show that ethnic heterogeneity has a negative effect on growth. The negative effect is seen largely in the hampering of efficiency improvements, but not capital accumulation.

Ethnic heterogeneity influences economic growth through various channels such as efficiency improvement, capital accumulation, and technological progress. However, it is open to discussion exactly how ethnic heterogeneity affects these channels. Hence, this paper attempts to examine the effects...