This book provides an in-depth coverage of the effect of ethnic diversity on socio economic outcomes. Economic development scholars today are increasingly sensitive to the role of ethnicity and its influence on social conflict which continues to remain a strong impediment to economic development.Practical evidence shows that members of ethnically discriminated groups are far from enjoying equal opportunities with members of dominant groups. Hence, the discussion on ethnicity and its effect is becoming more and more important and relevant in today's world. The author with her expertise and experience in the field of Political Economy and Econometrics gives a masterly presentation of empirical findings on the effect of ethnicity on various aspects related society and economics. This book presents an empirical investigation on the role of ethnicity along caste and religion in influencing local government spending, productivity of social capital and human capital outcome. This book will be extremely useful for Students of Economics and PhD scholars who are doing empirical research in Political Economy and all those who have an abiding interest in Political Economy.