Working Paper: CEPR ID: DP9719
Authors: Roberto Ezcurra; Andrés Rodríguez-Pose
Abstract: This paper examines the relationship between government quality and spatial inequality across 46 countries over the period 1996-2006. The results of the analysis point to the existence of a negative and significant association between government quality and the magnitude of regional disparities. Countries with better quality of government register lower levels of spatial inequality. This finding is robust to the inclusion in the analysis of additional explanatory variables that may aff ect both regional disparities and governance outcomes. The observed link between government quality and spatial inequality is confirmed by various robustness tests.
Keywords: government quality; spatial inequality
JEL Codes: H11; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Lower spatial inequality (I14) | Higher government quality (H11) |
| Higher government quality (H11) | Lower spatial inequality (I14) |