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Spatial inequality and household poverty in Ghana

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  • S. Annim
  • S. Mariwah
  • J. Sebu

Abstract

Abstract Over time, while some countries have experienced trends of poverty and inequality moving in the same direction, others have witnessed the two developmental issues panning out in opposite directions. The latter is observed in Ghana, where in the last two decades poverty has been reducing and consumption inequality is on the ascendency. Motivated by this observation, we address three objectives in this paper. First, we decompose inequality using administrative districts as the unit of analysis to examine within and between contributions to national inequality. Second, we examine trends of inequality in the only region (Eastern) of Ghana that experienced a reduction in inequality over the period 1991-2006; and, finally, we investigate the relationship between district-level inequality and household poverty. The last three rounds of the Ghana Living Standard Survey are used for our analysis. We observe that the contribution of within district inequality is higher than inequality between districts. This pattern is observed for other geographical classifications, such as rural-urban, ecological zone and regions. In the Eastern region of Ghana, where overall inequality reduced over the period 1998 to 2005, this was not the case for about 50 percent of the districts in the region. Finally, district-level inequality shows a significant effect on household poverty, but with varying signs, depending on the state of economic activity of the unit of analysis (district) and factors that affect both poverty and inequality. We recommend that districtlevel policy implementers should be tasked with the responsibility of minimising inequality within their district and therefore overall inequality in Ghana. Also, poverty reduction strategies should take into consideration district-level poverty and other factors, such as land size distribution, that jointly affect poverty and inequality.

Suggested Citation

  • S. Annim & S. Mariwah & J. Sebu, 2012. "Spatial inequality and household poverty in Ghana," Global Development Institute Working Paper Series 16112, GDI, The University of Manchester.
  • Handle: RePEc:bwp:bwppap:16112
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    References listed on IDEAS

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    Cited by:

    1. McKay Andrew & Pirttilä Jukka & Tarp Finn, 2015. "Ghana: Poverty Reduction Over Thirty Years," WIDER Working Paper Series 052, World Institute for Development Economic Research (UNU-WIDER).
    2. Stephan Klasen & Nathalie Scholl & Rahul Lahoti & Sophie Ochmann & Sebastian Vollmer, 2016. "Inequality – Worldwide Trends and Current Debates," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 209, Courant Research Centre PEG.
    3. Eric Amoo Bondzie & Gabriel Obed Fosu & Ernest Obu-Cann, 2014. "Poverty and Regional Inequality in Ghana; A Review," Journal of Social Economics, Research Academy of Social Sciences, vol. 1(1), pages 32-36.

    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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