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Spatial inequality and household poverty in Ghana

Author

Listed:
  • S. Annim
  • S. Mariwah
  • J. Sebu
Abstract
Over time, while some countries have experienced trends of poverty and inequality moving in the same direction, others have witnessed the two developmental issues panning out in opposite directions. The latter is observed in Ghana, where in the last two decades poverty has been reducing and consumption inequality is on the ascendency. Motivated by this observation, we address three objectives in this paper. First, we decompose inequality using administrative districts as the unit of analysis to examine within and between contributions to national inequality. Second, we examine trends of inequality in the only region (Eastern) of Ghana that experienced a reduction in inequality over the period 1991-2006; and, finally, we investigate the relationship between district-level inequality and household poverty. The last three rounds of the Ghana Living Standard Survey are used for our analysis. We observe that the contribution of within district inequality is higher than inequality between districts. This pattern is observed for other geographical classifications, such as rural-urban, ecological zone and regions. In the Eastern region of Ghana, where overall inequality reduced over the period 1998 to 2005, this was not the case for about 50 percent of the districts in the region. Finally, district-level inequality shows a significant effect on household poverty, but with varying signs, depending on the state of economic activity of the unit of analysis (district) and factors that affect both poverty and inequality. We recommend that districtlevel policy implementers should be tasked with the responsibility of minimising inequality within their district and therefore overall inequality in Ghana. Also, poverty reduction strategies should take into consideration district-level poverty and other factors, such as land size distribution, that jointly affect poverty and inequality.

Suggested Citation

  • S. Annim & S. Mariwah & J. Sebu, 2012. "Spatial inequality and household poverty in Ghana," Global Development Institute Working Paper Series 16112, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:16112
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    References listed on IDEAS

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    Cited by:

    1. Eric Fosu Oteng-Abayie & Kofi Amanor & Anthony Kofi Osei-Fosu, 2023. "Spatial analysis of the effect of microfinance on poverty and inequality in Ghana," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 25(1), pages 196-231, June.
    2. Andy McKay & Jukka Pirttilä & Finn Tarp, 2015. "Ghana: Poverty Reduction Over Thirty Years," WIDER Working Paper Series wp-2015-052, World Institute for Development Economic Research (UNU-WIDER).
    3. Frank Agyire-Tettey & Derek Asuman & Charles Godfred Ackah & Antoinette Tsiboe-Darko, 2021. "Multidimensional Child Poverty in Ghana: Measurements, Determinants, and Inequalities," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(3), pages 957-979, June.
    4. Richard Kwabena Nkrumah & Samuel Kobina Annim & Benedict Afful, 2021. "Household Social Expenditure in Ghana: Examining the Ex-Post Effects and Vulnerability to Poverty," Social Sciences, MDPI, vol. 10(2), pages 1-15, January.
    5. Sylvanus Gaku, 2022. "Understanding Ghana’s Expenditure Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1463-1480, December.
    6. Andrew McKay & Jukka Pirttilä & Finn Tarp, 2015. "Ghana: Poverty reduction over thirty years," WIDER Working Paper Series 052, World Institute for Development Economic Research (UNU-WIDER).
    7. Temilola Osinubi, Tolulope, 2020. "The Role Of Income Inequality In The Globalisation-Poverty Nexus: Empirical Evidence From Mint Countries," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 7(2), pages 67-89, June.
    8. Agyen, Vida Afarebea & Annim, Samuel Kobina & Asmah, Emmanuel Ekow, 2024. "Neighbourhood mothers’ education and its differential impact on stunting: Evidence from 30 Sub-Saharan African countries," Social Science & Medicine, Elsevier, vol. 340(C).
    9. Eric Amoo Bondzie & Gabriel Obed Fosu & Ernest Obu-Cann, 2014. "Poverty and Regional Inequality in Ghana; A Review," Journal of Social Economics, Research Academy of Social Sciences, vol. 1(1), pages 32-36.
    10. Sara Stevano & Deborah Johnston & Emmanuel Codjoe, 2018. "Urban food security in the context of inequality and dietary change: a study of school children in Accra," Working Papers 20181804, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    11. Nkechi S. OWOO & Robert OSEI & Stephen AFRANIE, 2020. "Exploring the dynamics of micro- level consumption inequality in Ghana," Working Paper 5156dca6-42ff-4195-a423-5, Agence française de développement.

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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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