The Tiebout Hypothesis in Africa: Evidence from Angola

Abstract

This paper analyses the Tiebout hypothesis in Angola's provinces from 2004 to 2013, using a spatial panel data model. The Tiebout hypothesis, which states that a country's internal migration is dictated by regional public policy, is tested. Angola's internal inter-provincial migration is related to gross domestic product per capita, local public expenditure, unemployment, poverty, population density, the number of public employees in the region, and a NGO for civic education. The results reveal that spatial autocorrelation is a reality in the Angolan context, validating the adoption of a spatial model, and that regional migration is explained by the covariates. The general conclusion is that the Tiebout hypothesis is accepted in the Angolan regions, and that the most important cause of migration is regional poverty. Policy implications are derived and it is concluded that an efficient anti-poverty policy is needed in the Angolan context at regional level in order to decrease internal migration.