The economic effects of the territoriality principle

Abstract The territoriality principle stipulates that minority communities in a given territory should be linguistically accommodated. What are the economic effects of this principle? In paper, we argue recognition multiple languages confers respect on group; it allows people to engage and participate meaningfully society – thereby facilitating well-being. There is, however, caveat: when happens areas where is overwhelming majority, there risk near-exclusive use language cuts community off from larger national state, which turn stunts development. To test this, focus Transylvania, Romania. We leverage legal stipulation recognizes constitutes more than 20% population. Using data at municipal level, find increases well-being general but not numerically dominant. Our results normatively welcoming, they also caution governments simply recognize protect them adequately.