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| Cultural Diversity and Enterprises’ InnovationA Study Based on the Perspective of Dialects |
| PAN Yue, XIAO Jinli, DAI Yiyi
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| School of Economics/School of Management,Xiamen University |
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Abstract China, with a vast region and diverse culture, gives us a chance to study the relationship between culture and finance. In this paper, we empirically research the impact of cultural diversity on enterprises’ innovation, with the former measured by the number of dialects and their difference in a city. We find that more considerable cultural diversity leads to more innovation output in private high-tech enterprises. The result is still robust after adopting instrument variables method and controlling the difference in education. What’s more, a more significant effect would appear in cities where have bigger diversity in different dialects, more tolerant, more population inflow and better intellectual property protection. This paper contributes to the understanding of non-institutional factors behind the unbalanced development among cities in China, and provides evidence from a rich-culture, non-immigrant country for international research about “culture and finance”.
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Received: 22 May 2017
Published: 18 January 2018
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