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Economic Effects of Clustering of Ethnically Similar Communities in Kenya: Application of Spatial Correlation Model

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  • Nobuaki Hamaguchi

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

Using regional data of Kenya, we found that income spillovers depend on ethnic similarity, which suggests the influence of ethnic bias. 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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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2010-26.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2010-26.

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Length: 14 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:kob:dpaper:dp2010-26

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Keywords: Ethnic diversity; Transaction cost;

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