Is Living in African Cities Expensive?

Although several studies have examined why overall price levels are higher in richer countries, little is known about whether there is a similar relationship at the urban and city level across countries. This paper compares the price levels of cities in Sub-Saharan Africa with those of other regions...

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Main Authors: Nakamura, Shohei, Harati, Rawaa, Lall, Somik V., Dikhanov, Yuri M., Hamadeh, Nada, Oliver, William Vigil, Rissanen, Marko Olavi, Yamanaka, Mizuki
Format: Journal Article
Published: Taylor and Francis 2019
Subjects:
Online Access:http://hdl.handle.net/10986/31546
id okr-10986-31546
recordtype oai_dc
spelling okr-10986-315462021-05-25T10:54:37Z Is Living in African Cities Expensive? Nakamura, Shohei Harati, Rawaa Lall, Somik V. Dikhanov, Yuri M. Hamadeh, Nada Oliver, William Vigil Rissanen, Marko Olavi Yamanaka, Mizuki PURCHASING POWER PARITY PRICES URBANIZATION INTERNATIONAL COMPARISON PROJECT Although several studies have examined why overall price levels are higher in richer countries, little is known about whether there is a similar relationship at the urban and city level across countries. This paper compares the price levels of cities in Sub-Saharan Africa with those of other regions by analyzing price information collected for the purpose of calculating official purchasing power parities. The approach of the paper is to readjust the calculated price levels from national to urban levels, using known price-level ratios between those areas. The results indicate that African cities are relatively more expensive, despite having lower income levels. The price levels of goods and services consumed by households are 25 to 28 percent higher in Sub-Saharan Africa than in other low- and middle-income countries, relative to their income levels. Such high costs of living could constrain livelihood of low-income urban residents, as well as the development of Africa’s urban economies. 2019-04-15T18:36:55Z 2019-04-15T18:36:55Z 2019 Journal Article Applied Economics Letters 1350-4851 http://hdl.handle.net/10986/31546 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research Africa Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
topic PURCHASING POWER PARITY
PRICES
URBANIZATION
INTERNATIONAL COMPARISON PROJECT
spellingShingle PURCHASING POWER PARITY
PRICES
URBANIZATION
INTERNATIONAL COMPARISON PROJECT
Nakamura, Shohei
Harati, Rawaa
Lall, Somik V.
Dikhanov, Yuri M.
Hamadeh, Nada
Oliver, William Vigil
Rissanen, Marko Olavi
Yamanaka, Mizuki
Is Living in African Cities Expensive?
geographic_facet Africa
Sub-Saharan Africa
description Although several studies have examined why overall price levels are higher in richer countries, little is known about whether there is a similar relationship at the urban and city level across countries. This paper compares the price levels of cities in Sub-Saharan Africa with those of other regions by analyzing price information collected for the purpose of calculating official purchasing power parities. The approach of the paper is to readjust the calculated price levels from national to urban levels, using known price-level ratios between those areas. The results indicate that African cities are relatively more expensive, despite having lower income levels. The price levels of goods and services consumed by households are 25 to 28 percent higher in Sub-Saharan Africa than in other low- and middle-income countries, relative to their income levels. Such high costs of living could constrain livelihood of low-income urban residents, as well as the development of Africa’s urban economies.
format Journal Article
author Nakamura, Shohei
Harati, Rawaa
Lall, Somik V.
Dikhanov, Yuri M.
Hamadeh, Nada
Oliver, William Vigil
Rissanen, Marko Olavi
Yamanaka, Mizuki
author_facet Nakamura, Shohei
Harati, Rawaa
Lall, Somik V.
Dikhanov, Yuri M.
Hamadeh, Nada
Oliver, William Vigil
Rissanen, Marko Olavi
Yamanaka, Mizuki
author_sort Nakamura, Shohei
title Is Living in African Cities Expensive?
title_short Is Living in African Cities Expensive?
title_full Is Living in African Cities Expensive?
title_fullStr Is Living in African Cities Expensive?
title_full_unstemmed Is Living in African Cities Expensive?
title_sort is living in african cities expensive?
publisher Taylor and Francis
publishDate 2019
url http://hdl.handle.net/10986/31546
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