Resource information
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.
