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Economic Growth and Poverty: Spatial Regression Analysis

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  • Waleerat Suphannachart Author-Email : fecowrs@ku.ac.th

    (Department of Agricultural and Resource Economics,Faculty of Economics,Kasetsart University,Thailand)

Abstract

This article aims at introducing a spatial aspect of analyzing the relationship between economic growth and poverty, in which the geographical disparity plays an important role. A case study of growth poverty elasticity of Sumatra, Indonesia, using district-level data, is provided as an example of how spatial issues can be incorporated in the analysis. An application of spatial regression is introduced as a suitable method. The case study of Sumatra indicates that spatial influence exists in the poverty determinant model and this spatial relationship shall not be ignored in estimating GEP. Poverty incidence in Sumatra tends to be concentrated in particular locations which is influenced by spatial factors such as types of land, soil condition, transportation, and infrastructure. This suggests a poverty alleviation program should be developed targeting larger regional bases, rather than concentrating on various small areas. This method can be applied in a number of topics in agricultural economics as well as other fields relating to location factors and neighborhood influence.

Suggested Citation

  • Waleerat Suphannachart Author-Email : fecowrs@ku.ac.th, 2015. "Economic Growth and Poverty: Spatial Regression Analysis," Working Papers 201503, Kasetsart University, Department of Agricultural and Resource Economics.
    • Handle: RePEc:kau:wpaper:201503
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    File URL: http://agri.eco.ku.ac.th/RePEc/kau/wpaper/are201503.pdf
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    More about this item

    Keywords

    Economic Growth; Poverty; Spatial Regression;
    All these keywords.

    JEL classification:

    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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