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Does economic geography matter for Pakistan? a spatial exploratory analysis of income and education inequalities

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  • Ahmed, Sofia
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    Abstract

    Generally, econometric studies on socio-economic inequalities consider regions as independent entities, ignoring the likely possibility of spatial interaction between them. This interaction may cause spatial dependency or clustering, which is referred to as spatial autocorrelation. This paper analyzes for the first time, the spatial clustering of income, income inequality, education, human development, and growth by employing spatial exploratory data analysis (ESDA) techniques to data on 98 Pakistani districts. By detecting outliers and clusters, ESDA allows policy makers to focus on the geography of socio-economic regional characteristics. Global and local measures of spatial autocorrelation have been computed using the Moran’s I and the Geary’s C index to obtain estimates of the spatial autocorrelation of spatial disparities across districts. The overall finding is that the distribution of district wise income inequality, income, education attainment, growth, and development levels, exhibits a significant tendency for socio-economic inequalities and human development levels to cluster in Pakistan (i.e. the presence of spatial autocorrelation is confirmed).

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35062.

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    Date of creation: 2011
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    Handle: RePEc:pra:mprapa:35062

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    Keywords: Spatial effects; spatial exploratory analysis; spatial disparities; income inequality; education inequality; spatial autocorrelation;

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    1. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
    2. Fatih Celebioglu & Sandy Dall’erba, 2010. "Spatial disparities across the regions of Turkey: an exploratory spatial data analysis," The Annals of Regional Science, Springer, vol. 45(2), pages 379-400, October.
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    12. repec:fth:iniesr:430 is not listed on IDEAS
    13. Laura de Dominicis & Giuseppe Arbia & Henri L.F. de Groot, 2007. "The Spatial Distribution of Economic Activities in Italy," Tinbergen Institute Discussion Papers 07-094/3, Tinbergen Institute.
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