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Spatial inequalities explained - Evidence from Burkina Faso

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Abstract

The 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.

Suggested Citation

  • Johannes Gräb & Michael Grimm, 2008. "Spatial inequalities explained - Evidence from Burkina Faso," Ibero America Institute for Econ. Research (IAI) Discussion Papers 173, Ibero-America Institute for Economic Research.
  • Handle: RePEc:got:iaidps:173
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    1. Michael Grimm & Isabel Günther, 2007. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(1), pages 70-101, January.
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    Cited by:

    1. Gönsch, Iris, 2010. "Determinants of primary school enrollment in Haiti and the Dominican Republic," Discussion Papers 54, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    2. Monica Beuran & Marie Castaing Gachassin & Gaël Raballand, 2013. "Are There Myths on Road Impact and Transport in Sub-Saharan Africa?," Post-Print halshs-00830006, HAL.
    3. Monica Beuran & Marie Gachassin & Gaël Raballand, 2015. "Are There Myths on Road Impact and Transport in Sub-Saharan Africa?," Development Policy Review, Overseas Development Institute, vol. 33(5), pages 673-700, September.

    More about this item

    Keywords

    Spatial inequality; poverty; multilevel modeling; decomposition; Sub-Saharan Africa;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, 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)

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