Spatial inequalities explained - Evidence from Burkina Faso
AbstractThe literature shows that regional disparities in growth and poverty are often relatively high, that these regional disparities do not necessarily disappear as the economies grow and develop and that these disparities are itself in many cases an important driver of the overall performance of an economy. In this paper we make use of the advantage of a multilevel random coefficient model to explain spatial disparities in incomes among Burkinab`e households. Our findings show that it is not a geographical concentration of people with poor endowments that make areas poor in Burkina Faso. Household income disparities are largely driven by differences in neighborhood endowments and to a smaller extent by provincial or regional characteristics. We conclude that the policy should target small scale geographical units, such as villages. Providing infrastructure, enhancing the functioning of labor markets and fostering demand for education can compensate for climatical disadvantages.
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Bibliographic InfoPaper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 173.
Length: 35 pages
Date of creation: 23 Jul 2008
Date of revision:
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Spatial inequality; poverty; multilevel modeling; decomposition; Sub-Saharan Africa;
Other versions of this item:
- Johannes Gräb & Michael Grimm, 2008. "Spatial Inequalities Explained: Evidence from Burkina Faso," Discussion Papers of DIW Berlin 843, DIW Berlin, German Institute for Economic Research.
- GrÃ¤b, J. & Grimm, M., 2009. "Spatial inequalities explained: evidence from Burkina Faso," ISS Working Papers - General Series 1765018725, International Institute of Social Studies of Erasmus University (ISS), The Hague.
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-10-21 (Africa)
- NEP-ALL-2008-10-21 (All new papers)
- NEP-DEV-2008-10-21 (Development)
- NEP-GEO-2008-10-21 (Economic Geography)
- NEP-URE-2008-10-21 (Urban & Real Estate Economics)
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