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

  • Ahmed, Sofia
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    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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    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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    1. Balisacan, Arsenio M. & Fuwa, Nobuhiko, 2004. "Changes in Spatial Income Inequality in the Philippines: An Exploratory Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    2. Saint-Paul, Gilles & Verdier, Thierry, 1993. "Education, democracy and growth," Journal of Development Economics, Elsevier, vol. 42(2), pages 399-407, December.
    3. Haroon Jamal & Amir Jahan Khan, 2005. "The Knowledge Divide: Education Inequality in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 10(1), pages 83-104, Jan-Jun.
    4. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
    5. Rizwana Siddiqui, 2008. "Income, Public Social Services, and Capability Development: A Cross-district Analysis of Pakistan," PIDE-Working Papers 2008:43, Pakistan Institute of Development Economics.
    6. LE GALLO, Julie & ERTUR, Cem, 2000. "Exploratory spatial data analysis of the distribution of regional per capita GDP in Europe, 1980-1995," LATEC - Document de travail - Economie (1991-2003) 2000-09, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    7. Andrés Rodríguez-Pose & Vassilis Tselios, 2007. "Mapping the European regional educational distribution: Educational attainment and inequality," Working Papers 2007-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    8. 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.
    9. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
    10. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
    11. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
    12. Costas Megir & Danny Quah, 1996. "Regional Convergence Clusters Across Europe," CEP Discussion Papers dp0274, Centre for Economic Performance, LSE.
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