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Spatial inequalities explained - Evidence from Burkina Faso

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.

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File URL: http://www2.vwl.wiso.uni-goettingen.de/ibero/working_paper_neu/DB173.pdf
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Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 173.

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Length: 35 pages
Date of creation: 23 Jul 2008
Date of revision:
Handle: RePEc:got:iaidps:173
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  1. Michael Grimm & Isabel Günther, 2005. "Growth and Poverty in Burkina Faso. A Reassessment of the Paradox," Working Papers DT/2005/07, DIAL (Développement, Institutions et Mondialisation).
  2. Philippe De Vreyer & Javier Herrera & Sandrine Mesplé-Somps, 2002. "Consumption growth and spatial poverty traps: an analysis of the effects of social services and community infrastructures on living standards in rural Peru," Working Papers DT/2002/17, DIAL (Développement, Institutions et Mondialisation), revised Oct 2003.
  3. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-37, July.
  4. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
  5. Stefan Dercon, 2003. "Growth and Shocks: evidence from rural Ethiopia," CSAE Working Paper Series 2003-12, Centre for the Study of African Economies, University of Oxford.
  6. Jiming Jiang & P. Lahiri, 2006. "Mixed model prediction and small area estimation," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 15(1), pages 1-96, June.
  7. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-36, July.
  8. Garrett, James L. & Ruel, Marie T., 1999. "Are determinants of rural and urban food security and nutritional status different?," FCND discussion papers 65, International Food Policy Research Institute (IFPRI).
  9. Benson, Todd & Chamberlin, Jordan & Rhinehart, Ingrid, 2005. "An investigation of the spatial determinants of the local prevalence of poverty in rural Malawi," Food Policy, Elsevier, vol. 30(5-6), pages 532-550.
  10. Timothy Besley & Louise J. Cord, 2007. "Delivering on the Promise of Pro-Poor Growth : Insights and Lessons from Country Experiences," World Bank Publications, The World Bank, number 7180.
  11. David Bigman & Stefan Dercon & Dominique Guillaume & Michel Lambotte, 1999. "Community Targeting for Poverty Reduction in Burkina Faso," Center for Economic Studies - Discussion papers ces9910, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  12. repec:ese:iserwp:2007-10 is not listed on IDEAS
  13. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
  14. Riccardo Borgoni & Ulf-Christian Ewert & Alexia Fürnkranz-Prskawetz, 2002. "How important are household demographic characteristics to explain private car use patterns? A multilevel approach to Austrian data," MPIDR Working Papers WP-2002-006, Max Planck Institute for Demographic Research, Rostock, Germany.
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