Homophobia
Economic cost

There are at least two studies which indicate that homophobia may have a negative economic impact for the countries where it is widespread. In these countries there is a flight of their LGBT populations—with the consequent loss of talent—as well as an avoidance of LGBT tourism, that leaves the pink money in LGBT-friendlier countries. As an example, LGBT tourists contribute 6.8 billion dollars every year to the Spanish economy.

As soon as 2005, an editorial from the New York Times related the politics of don't ask, don't tell in the US Army with the lack of translators from Arabic, and with the delay in the translation of Arabic documents, calculated to be about 120,000 hours at the time. Since 1998, with the introduction of the new policy, about 20 Arabic translators had been expelled from the Army, specifically during the years the US was involved in wars in Iraq and Afghanistan.

M. V. Lee Badgett, an economist at the University of Massachusetts Amherst, presented in March 2014 in a meeting of the World Bank the results of a study about the economic impact of homophobia in India. Only in health expenses, caused by depression, suicide, and HIV treatment, India would have spent additional 23,100 million dollars due to homophobia. On top, there would be costs caused by violence, workplace loss, rejection of the family, and bullying at school, that would result in a lower education level, lower productivity, lower wages, worse health, and a lower life expectancy among the LGBT population. In total, she estimated for 2014 in India a loss of up to 30,800 million dollars, or 1.7% of the Indian GDP.

The LGBT activist Adebisi Alimi, in a preliminary estimation, has calculated that the economic loss due to homophobia in Nigeria is about 1% of its GDP. Taking into account that in 2015 homosexuality is still illegal in 36 of the 54 African countries, the money loss due to homophobia in the continent could amount to hundreds of millions of dollars every year.

Another study regarding socioecological measurement of homophobia and its public health impact for 158 countries was conducted in 2018. It found that the prejudice against gay people has a worldwide economic cost of $119.1 billion. Economical loss in Asia was 88.29 billion dollars due to homophobia, and in Latin America & the Caribbean it was 8.04 billion dollars. Economical cost in East Asia and Middle Asia was 10.85 billion dollars. Economical cost in Middle East and North Africa was 16.92 billion dollars. The researcher suggested that a 1% decrease in the level of homophobia is correlated with a 10% increase in the gross domestic product per capita – though this does not imply causation.

A 2018 study by The Williams Institute (UCLA School of Law) concludes that there is a positive correlation between LGBT inclusion and GDP per capita. According to this study, the legal rights of LGBT people have a bigger influence than the degree of acceptance in the society, but both effects reinforce each other. A one-point increase in their LGBT Global Acceptance Index (GAI) showed an increase of $1,506 in GDP per capita, and one additional legal right was correlated with an increase of $1,694 in GDP per capita.
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