Ethnic Diversity, Historical Economic Exchange, and Development: Evidence from Andean Peru

Miriam Artiles

American Economic Journal: Applied Economics2026https://doi.org/10.1257/app.20240281article
AJG 4ABDC A*
Weight
0.50

Abstract

Is ethnic diversity good or bad for economic development? Most studies find corrosive effects. This paper shows that historical exposure to economic exchange can mitigate these effects in the long run. I collect data from a natural experiment of Peru's colonial history: the forced resettlement of native populations in the sixteenth century. Where the resettlement concentrated ethnically diverse populations with a history of internal crop exchange, contemporary populations perform better systematically. Additional evidence suggests that prior experience with mutually beneficial crop exchange shaped more open attitudes toward out-group members. Economic complementarities helped sustain long-run, market-oriented cooperation and local trade. (JEL F54, J15, N16, N36, N56, O15, Q12)

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https://doi.org/https://doi.org/10.1257/app.20240281

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@article{miriam2026,
  title        = {{Ethnic Diversity, Historical Economic Exchange, and Development: Evidence from Andean Peru}},
  author       = {Miriam Artiles},
  journal      = {American Economic Journal: Applied Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1257/app.20240281},
}

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Ethnic Diversity, Historical Economic Exchange, and Development: Evidence from Andean Peru

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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