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The inequality-growth link revisited with spatial considerations: the case of provinces in the Philippines

Author

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  • Valerien O. Pede
  • Gustavo Barboza
  • Adam H. Sparks
  • Justin McKinley

Abstract

This study revisits the relationship between income inequality and economic growth using provincial-level data from the Philippines over a ten-year period (1991–2000). This study demonstrates that the magnitude and significance of the inequality-growth relationship is not stable across space and the magnitude can be overestimated when spatial considerations are excluded from analysis. Generally, existing literature on the relationship between income inequality and economic growth has largely overlooked spatial elements. To avoid this exclusion, geographically weighted regression (GWR) estimates were used in this study. Results using GWR showed the magnitude of the inequality-growth relationship varied over a range of 0.70–0.85. The results of this study reinforce the idea that previous studies that have excluded spatial variation have likely overestimated the inequality-growth relationship, particularly in differences between urban and rural provinces.

Suggested Citation

  • Valerien O. Pede & Gustavo Barboza & Adam H. Sparks & Justin McKinley, 2018. "The inequality-growth link revisited with spatial considerations: the case of provinces in the Philippines," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(3), pages 411-427, July.
    • Handle: RePEc:taf:rjapxx:v:23:y:2018:i:3:p:411-427
    DOI: 10.1080/13547860.2018.1503765
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    Cited by:

    1. Delphin Kamanda Espoir & Nicholas Ngepah, 2021. "Income distribution and total factor productivity: a cross-country panel cointegration analysis," International Economics and Economic Policy, Springer, vol. 18(4), pages 661-698, October.
    2. Byron Quito & María de la Cruz del Río‐Rama & José Álvarez‐García & Ronny Correa‐Quezada, 2022. "Impact factors and space‐time characteristics of income inequality in a global sample," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1850-1868, December.

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