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Understanding the sources of spatial disparity and convergence : evidence from Bangladesh

  • Shilpi, Forhad

This paper utilizes the mixed effects model to measure and decompose spatial disparity in per capita expenditure in Bangladesh between 2000 and 2010. It finds a significant decline in spatial disparity in urban areas and the country as a whole but no substantial change in rural areas. The decomposition analysis indicates that average years of education, the percentage of households with electricity connections, and phone ownership account for most of the spatial variations in welfare. Spatial convergence in urban areas can be explained primarily by the expansion of electricity and phone networks for household use. Improved access to these services had little effect on spatial disparity in rural areas. This paper offers several explanations for the difference in convergence rates between urban and rural areas.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6519.

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Date of creation: 01 Jun 2013
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Handle: RePEc:wbk:wbrwps:6519
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  1. Shilpi Forhad, 2011. "Mobility Costs and Regional Inequality: Evidence from Bangladesh," Journal of Globalization and Development, De Gruyter, vol. 2(1), pages 1-32, August.
  2. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
  3. Marianne E. Page & Gary Solon, 2003. "Correlations between Brothers and Neighboring Boys in Their Adult Earnings: The Importance of Being Urban," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 831-856, October.
  4. Escobal, Javier & Torero, Maximo, 2003. "Adverse Geography and Differences in Welfare in Peru," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Elbers, Chris & Lanjouw, Peter F. & Mistiaen, Johan & Ozler, Berk & Simler, Ken, 2004. "On the unequal inequality of poor communities," Policy Research Working Paper Series 3313, The World Bank.
  6. Ravallion, Martin & Wodon, Quentin, 1997. "Poor areas, or only poor people?," Policy Research Working Paper Series 1798, The World Bank.
  7. Deichmann, Uwe & Shilpi, Forhad & Vakis, Renos, 2009. "Urban Proximity, Agricultural Potential and Rural Non-farm Employment: Evidence from Bangladesh," World Development, Elsevier, vol. 37(3), pages 645-660, March.
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