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Ethnic Diversity and Economic Instability in Africa: Policies for Harmonious Development >

Please use this identifier to cite or link to this item: http://hdl.handle.net/10685/61

Title: Evidence from Spatial Correlation of Poverty and Income in Kenya
Authors: Hamaguchi, Nobuaki
Keywords: ethnic bias
spatial correlation
regional economy
Issue Date: 14-Nov-2011
Series/Report no.: Working Paper No.35
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.
URI: http://hdl.handle.net/10685/61
Appears in Collections:Ethnic Diversity and Economic Instability in Africa: Policies for Harmonious Development

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