Spatial inequality and development — Is there an inverted-U relationship?

Christian Lessmann

Journal of Development Economics, 2014, vol. 106, issue C, 35-51

Abstract: This paper studies the hypothesis of an inverted-U-shaped relationship between spatial inequality and economic development. The theory of Kuznets (1955) and Williamson (1965) suggests that (spatial) inequality first increases in the process of development, and then decreases. To test this hypothesis I have used a unique panel data set of spatial inequalities in 56 countries at different stages of economic development, covering the period 1980–2009. Parametric and semiparametric regressions are carried out using cross-section and (unbalanced) panel data. The results provide strong support for the existence of an inverted-U. I also find some evidence that spatial inequalities increase again at very high levels of economic development.

Keywords: Regional inequality; Kuznets curve; Panel data; Semiparametric estimates (search for similar items in EconPapers)
JEL-codes: D31 O15 R1 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (90)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304387813001260
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Spatial Inequality and Development - Is there an Inverted-U Relationship? (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:106:y:2014:i:c:p:35-51

DOI: 10.1016/j.jdeveco.2013.08.011

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().