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Evidence from Spatial Correlation of Poverty and Income in Kenya

Nobuaki Hamaguchi

No 35, Working Papers from JICA Research Institute

Abstract: Using the district-level data, we found that even in a relatively poor country like Kenya, ethnic diversity is associated with better economic outcomes at local level. However, we found that income spillovers depend on ethnic similarity. This suggests the influence of ethnic bias through which ethnic diversity may undermine economic efficiency at the national-level, as many crosscountry regressions have pointed out. This result implies, for policy making, that the question of interregional transaction costs cannot be narrowly focused on problems of transportation infrastructure but it is also related with ethnic divisions in African context.

Keywords: ethnic bias; spatial correlation; regional economy (search for similar items in EconPapers)
Date: 2011-11-14
New Economics Papers: this item is included in nep-afr, nep-dem, nep-dev, nep-geo, nep-pbe and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:jic:wpaper:35

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