Understanding the Sources of Spatial Disparity and Convergence : Evidence from Bangladesh

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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Bibliographic Details
Main Author: Shilpi, Forhad
Language:English
en_US
Published: World Bank, Washington, DC 2013-06
Subjects:ACCESS TO DRINKING WATER, ACCESS TO ELECTRICITY, ACCESS TO INFRASTRUCTURE, ACCESS TO SAFE DRINKING WATER, ACCESS TO SANITATION, ACCESS TO SERVICES, AGRICULTURAL WORKERS, BASIC INFRASTRUCTURE, BULLETIN, CITIES, CLEAN DRINKING WATER, COST OF LIVING INDICES, CURRENT POPULATION, DECLINE IN POVERTY, DEMOGRAPHIC FACTORS, DEPENDENCY RATIO, DEVELOPING COUNTRIES, DEVELOPMENT POLICY, DISTRICTS, DRINKING WATER, ECOLOGICAL ZONES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EDUCATIONAL ATTAINMENT, ENGINEERS, EQUALITY OF OPPORTUNITY, EXTERNALITIES, FARM EMPLOYMENT, FEWER HOUSEHOLDS, GENDER, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HOUSEHOLDS WITH ELECTRICITY, HOUSING, HUMAN CAPITAL, INCIDENCE OF POVERTY, INCOME INEQUALITY, INTERNAL MIGRATION, INVESTMENT IN EDUCATION, LABOR FORCE, LABOR MOBILITY, LACK OF INFORMATION, LACK OF INFRASTRUCTURE, LAND QUALITY, LARGE CITIES, LIVING STANDARDS, MIGRATION, MOBILITY, NATURAL RESOURCES, NEIGHBORHOOD, NUMBER OF CHILDREN, NUMBER OF HOUSEHOLDS, PER CAPITA CONSUMPTION, POLICY DISCUSSIONS, POLICY MAKERS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POOR, POOR AREAS, POOR COMMUNITIES, POOR PEOPLE, POORER REGIONS, POPULATION CENSUS, POPULATION DENSITY, POVERTY ASSESSMENTS, POVERTY HEAD, POVERTY HEADCOUNT RATE, POVERTY INCIDENCE, POVERTY LINE, POVERTY REDUCTION, PRODUCTION WORKERS, PROGRESS, QUALITY OF LIFE, REGIONAL CONVERGENCE, REGIONAL DISPARITY, REGIONAL DIVERGENCE, REGIONAL INEQUALITIES, REGIONAL INEQUALITY, REGIONAL SCIENCES, RENTS, ROAD, ROAD TRANSPORT, RURAL, RURAL AREAS, RURAL DEVELOPMENT, RURAL EMPLOYMENT, RURAL HOUSEHOLDS, RURAL WORKERS, SANITATION, SCHOOL ACCESS, SERVICE PROVISION, SKILLED WORKERS, SOCIAL TENSIONS, SPATIAL DIFFERENCES, SPATIAL DISPARITY, SPATIAL EQUILIBRIUM MODEL, SPATIAL INEQUALITY, SPATIAL VARIATIONS, TRANSPORT COSTS, TRAVEL TIME, TRAVEL TIMES, TV, URBAN AREAS, URBAN CENTERS, WEALTH, WORKFORCE, mixed effects model, infrastructure, neighborhood correlation, sorting,
Online Access:http://documents.worldbank.org/curated/en/2013/06/17940164/understanding-sources-spatial-disparity-convergence-evidence-bangladesh
https://hdl.handle.net/10986/15877
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Summary: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.