Empirical evidence suggests that regional disparities in incomes are often very high, that these disparities do not necessarily disappear as economies grow and that these disparities are itself an important driver of growth. We use a novel approach based on multilevel modeling to decompose the sources of spatial disparities in incomes among households in Burkina Faso. We show that spatial disparities are not only driven by the spatial concentration of households with particular endowments but to a large extent also by disparities in community endowments. Climatic differences across regions do also matter, but to a much smaller extent.

Sub-Saharan Africa, decomposition, multilevel modeling, poverty, spatial inequality
Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions (jel C21), Measurement and Analysis of Poverty (jel I32), Microeconomic Analyses of Economic Development (jel O12), Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (jel R12)
Erasmus University Rotterdam
ISS Working Papers - General Series
ISS Working Paper Series / General Series
International Institute of Social Studies of Erasmus University (ISS)

Gräb, J, & Grimm, M. (2009). Spatial inequalities explained: evidence from Burkina Faso. ISS Working Paper Series / General Series (Vol. 468, pp. 1–34). Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/18725