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Regression analysis depends on several assumptions that have to be satisfied. A major assumption that is never satisfied when variables are from contiguous observations is the independence of error terms. Spatial analysis treated the violation of that assumption by two derived models that put contiguity of observations into consideration. Data used are from Egypt's 2006 latest census, for 93 counties in middle delta seven adjacent Governorates. The dependent variable used is the percent of individuals classified as poor (those who make less than 1$ daily). Predictors are some demographic indicators. Explanatory Spatial Data Analysis (ESDA) is performed to examine the existence of spatial clustering and spatial autocorrelation between neighboring counties. The ESDA revealed spatial clusters and spatial correlation between locations. Three statistical models are applied to the data, the Ordinary Least Square regression model (OLS), the Spatial Error Model (SEM) and the Spatial Lag Model (SLM).The Likelihood Ratio test and some information criterions are used to compare SLM and SEM to OLS. The SEM model proved to be better than the SLM model. Recommendations are drawn regarding the two spatial models used.


Spatial Regression Spatial Error Model Special Lag Model GeoDa ESDA LISA Maps.

Article Details

Author Biographies

Sohair F Higazi, Tanta University, Tanta, Egypt

Professor of Applied Statistics

Dept. Applied Statistics

Faculty of Commerce, Tanta University, Tanta, Egypt

Dina H. Abdel-Hady, Tanta University, Tanta

Assistant Professor of Statistics

Dept. of Statistics

Faculty of Commerce

How to Cite
Higazi, S. F., Abdel-Hady, D. H., & Al-Oulfi, S. A. (2013). Application of Spatial Regression Models to Income Poverty Ratios in Middle Delta Contiguous Counties in Egypt. Pakistan Journal of Statistics and Operation Research, 9(1), 93-110.