Evidence from Spatial Correlation of Poverty and Income in Kenya
AbstractUsing the district-level data, we found that even in a relatively poor country like Kenya, ethnic diversity is associated with better economic outcomes at local level. However, we found that income spillovers depend on ethnic similarity. This suggests the influence of ethnic bias through which ethnic diversity may undermine economic efficiency at the national-level, as many crosscountry regressions have pointed out. This result implies, for policy making, that the question of interregional transaction costs cannot be narrowly focused on problems of transportation infrastructure but it is also related with ethnic divisions in African context.
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Bibliographic InfoPaper provided by JICA Research Institute in its series Working Papers with number 35.
Date of creation: 14 Nov 2011
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ethnic bias ; spatial correlation ; regional economy;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-04-23 (Africa)
- NEP-ALL-2012-04-23 (All new papers)
- NEP-DEM-2012-04-23 (Demographic Economics)
- NEP-DEV-2012-04-23 (Development)
- NEP-GEO-2012-04-23 (Economic Geography)
- NEP-PBE-2012-04-23 (Public Economics)
- NEP-URE-2012-04-23 (Urban & Real Estate Economics)
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