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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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 |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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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? |
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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 |
_version_ |
1764474572419104768 |