Does MENA's Governance Lead to Spatial Agglomeration and Disparities?

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World Bank, Washington, DC

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In this paper the author analyze the link between spatial agglomeration, spatial disparities and political governance with an emphasis on the Middle East and North Africa (MENA) region. The agglomeration index and the urban-rural consumption ratio are used respectively as a measurement of spatial agglomeration and spatial disparities. The author distinguishes two aspects of political governance: political rights and political stability. Statistically, we find that agglomeration rate is higher in MENA, whereas the indexes of political rights and political stability are lower in MENA compared to the rest of the world and other lower middle income countries. When running the regressions, the data better fit the agglomeration model than the urban-rural consumption ratio model. Using cross-sectional data for 182 countries around the world, the author find that the political rights index is negatively and significantly linked to the agglomeration rate. Our results suggest that an improvement in MENA countries' level of political rights to the average of the rest of the world would be associated with agglomeration rate 4 percentage points lower than its average level in the region. The data also reveal an inverted-U relationship between the agglomeration rate and Gross Domestic Product (GDP) per capita, and a negative relationship between trade openness and the agglomeration rate.

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ACCOUNTABILITY, AGRICULTURAL POPULATION, AGRICULTURE, AVERAGE LEVEL, AVERAGE PERFORMANCE, BUSINESS ENVIRONMENT, CITIZENS, COMPETITIVENESS, COUNTRY CLASSIFICATION, COUNTRY SIZE, CROSS-COUNTRY ANALYSIS, CROSS-SECTIONAL DATA, CULTURAL CHANGE, DATA SET, DEBT, DECENTRALIZATION, DEMOCRACY, DEPENDENT VARIABLE, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, ECONOMETRIC ANALYSIS, ECONOMETRIC MODELS, ECONOMIC ACTIVITY, ECONOMIC CONCENTRATION, ECONOMIC DEVELOPMENT, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC HISTORY, ECONOMIC INTEGRATION, ECONOMIC OPPORTUNITIES, ECONOMIC PERFORMANCE, ECONOMIC POLICY, ECONOMIC RESEARCH, ECONOMIC REVIEW, ECONOMIC TRANSFORMATION, EMPIRICAL EVIDENCE, EMPIRICAL LITERATURE, EXPLANATORY FACTORS, EXPLANATORY VARIABLE, EXPORTS, EXTERNAL ACCOUNTABILITY, FAMILY PLANNING, FERTILITY, FOOD SECURITY, FOREIGN EXCHANGE, GDP, GDP PER CAPITA, GENERAL EQUILIBRIUM ANALYSIS, GOVERNANCE INDICATORS, GOVERNANCE QUALITY, HIGH GROWTH, HIV, HUMAN CAPITAL, INCOME, INCOME INEQUALITY, INCREASING RETURNS, INDUSTRIALIZATION, INEQUALITY, INTERNATIONAL COMPARISONS, INTERNATIONAL TRADE, INVENTORIES, INVERTED-U RELATIONSHIP, INVESTMENT CLIMATE, JOB CREATION, LABOR MARKET, LABOUR FORCE, LAND TENURE, LARGE POPULATION, LEVEL OF DEVELOPMENT, LIVING STANDARDS, LOCAL GOVERNMENTS, LOW INCOME, LOW INCOME COUNTRIES, MACROECONOMIC MANAGEMENT, MEAN VALUE, MEASUREMENT ERRORS, MEDIAN VOTER, MIDDLE INCOME COUNTRIES, MIGRATION, MILLENNIUM DEVELOPMENT GOALS, NATIONAL DEVELOPMENT, NATIONAL GOVERNMENTS, NATURAL RESOURCES, NEGATIVE EFFECT, NEGATIVE LINK, NEGATIVE RELATIONSHIP, NUTRITION, POLICY IMPLICATIONS, POLICY MAKERS, POLICY OPTIONS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POLITICAL INSTABILITY, POLITICAL INSTITUTIONS, POLITICAL PARTIES, POLITICAL PROCESS, POLITICAL RIGHTS, POLITICAL SCIENCE, POLITICAL STABILITY, POPULATION DENSITY, POPULATION SIZE, POSITIVE CORRELATION, POSITIVE EFFECT, PRIMATE CITY, PROGRESS, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC POLICIES, PUBLIC SECTOR, PUBLIC SERVICES, PURCHASING POWER, PURCHASING POWER PARITY, REGIONAL DIFFERENCES, REGIONAL GROWTH, REGIONAL INEQUALITY, RURAL AREAS, RURAL DEVELOPMENT, RURAL POPULATIONS, SECTOR EMPLOYMENT, SIGNIFICANT DIFFERENCES, SIGNIFICANT EFFECT, SIGNIFICANT RELATIONSHIP, SOCIAL DEVELOPMENT, SOCIAL SCIENCES, STATISTICAL ANALYSIS, TAX SYSTEM, TAXATION, TELECOMMUNICATIONS, TOTAL FACTOR PRODUCTIVITY, TRADE LIBERALIZATION, TRADE POLICY, TRANSPORTATION, URBAN AREAS, URBAN DEVELOPMENT, URBAN POPULATION, URBANIZATION, URBANIZATION RATE

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