Title

Economic Effects of Clustering of Ethnically Similar Communities in Kenya: Application of Spatial Correlation Model

Abstract

Using regional data of Kenya, we found that income spillovers depend on ethnic similarity, which suggests the influence of ethnic bias. 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.

Keywords

Ethnic diversity, transaction cost

JEL Classification

R58, O18

Inquiries

Nobuaki HAMAGUCHI
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059