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Determinants of Rural Income: The Role of Geography and Institutions in Kenya

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  • Maren Radeny
  • Erwin Bulte

Abstract

We revisit the debate about the root causes of income divergence, and ask whether geographical variables or institutions are the main determinants of income. Complementing earlier cross-country work, we focus on the local level and seek to explain within-country income differences. Analysing Kenyan household data, we find that certain geographical variables appear to be more important drivers of per capita income levels than local institutions. Once we control for geography, our measures of community-level institutions do not seem to explain within-Kenya differences in income. Copyright 2012 , Oxford University Press.

Suggested Citation

  • Maren Radeny & Erwin Bulte, 2012. "Determinants of Rural Income: The Role of Geography and Institutions in Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 21(2), pages 307-341, March.
  • Handle: RePEc:oup:jafrec:v:21:y:2012:i:2:p:307-341
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    File URL: http://hdl.handle.net/10.1093/jae/ejr039
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    Cited by:

    1. Frederik Wild & David Stadelmann, 2022. "Coastal proximity and individual living standards: Econometric evidence from georeferenced household surveys in subā€Saharan Africa," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 1883-1901, November.
    2. Fatima Lambarraa-Lehnhardt & Rico Ihle & Khadija Mhaouch, 2021. "Geographical indications for supporting rural development in the context of the Green Morocco Plan: Oasis dates," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(2), pages 70-79.
    3. Frederik Wild & David Stadelmann, 2021. "Coastal Proximity and Individual Living Standards: Econometric Evidence from Geo-Referenced Household Surveys," CREMA Working Paper Series 2021-22, Center for Research in Economics, Management and the Arts (CREMA).

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