Economic Growth Potentials and Race/Ethnicity in Tennessee

Abstract

This article establishes relationships between racial/ethnic diversity, segregation, and employment-by-industry-types in the counties of Tennessee. Using the American Community Survey and NAICS data, diversity scores, entropy indices, and location quotients for major-employment are computed for Tennessee's 95 counties. Cartographic analysis, followed by correlations, principal components and regression analyses help establish the above relationships. The north-east and west-central regions of Tennessee have concentration in primary-sectors of economy whereas counties with concentration in creative-class economy (e.g., Williamson, Davidson) have higher presence of Asians, and with greater human capital (education). Simultaneously, these are also the most segregated despite being diverse. Counties with higher diversity and higher share of African-Americans are segregated, despite having employment concentration in diverse set of industries. Enormous growth potentials exist in the sectors of education and health-care which can help Tennessee revitalize its economy.