Farole, ThomasFarole, Thomas2013-06-102013-06-102013-04-08978-0-8213-9893-7https://hdl.handle.net/10986/13817Economic theory, including endogenous growth, the role of institutions, and, most importantly, the New Economic Geography (NEG), have made significant progress in explaining the emergence of core-periphery patterns behind this divergence. They point to the critical role of agglomeration, which confers benefits to metropolitan cores that have the advantages of large markets, deep labor pools, links to international markets, and clusters of diverse suppliers and institutions. Regions relatively near the metropolitan core are likely to benefit from spillovers and congestion-related dispersion. Regions further outside the core however, are not only less able to take advantage of spillovers, but also more likely to be far removed from key infrastructural, institutional, and interpersonal links to regional and international markets. As a result, they face significant challenges to becoming competitive locations to host economic activity. Thus the geographical pattern of core and peripheral regions is increasingly manifest in an economic pattern of 'leading' and 'lagging' regionsen-USCC BY 3.0 IGOACCELERATORACCESS TO INFORMATIONACCESS TO KNOWLEDGEACCESS TO TECHNOLOGYAGRICULTURAL SECTORSAGRICULTUREBARRIERBARRIERS TO COMPETITIONBONDBORDER REGIONSBRAIN DRAINBUSINESS CLIMATEBUSINESS ECONOMICSCAPITAL FLOWSCENTRAL GOVERNMENTSCOMPARATIVE ADVANTAGECOMPETITIVENESS OF FIRMSCONNECTIVITYCONSUMERSCOUNTRY TO COUNTRYCROSS-REGIONAL DISPARITIESCURRENCYDATA AVAILABILITYDECENTRALIZATIONDEREGULATIONDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPMENT POLICYDISTRIBUTIONAL EFFECTSDOMESTIC CAPITALDOMESTIC ECONOMYDOMESTIC INVESTORSDOMESTIC MARKETDOMESTIC PRODUCTSDYNAMIC ECONOMYECONOMETRIC ANALYSISECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GEOGRAPHYECONOMIC GROWTHECONOMIC INTEGRATIONECONOMIC OUTCOMESECONOMIC REFORMSECONOMIC RESEARCHECONOMIC THEORYECONOMIES OF SCALEEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL STUDIESENVIRONMENTALENVIRONMENTSEPZEQUILIBRIUMEXCHANGE RATEEXPORT INTENSITYEXPORT MARKETSEXPORT PROCESSING ZONEEXPORT PROCESSING ZONESEXPORTERSEXPORTSEXPOSUREEXTERNALITIESFACTORS OF PRODUCTIONFINANCIAL INSTITUTIONFIXED COSTSFOREIGN DIRECT INVESTMENTFOREIGN INVESTORSFOREIGN MARKETFOREIGN MARKETSFOREIGN OWNERSHIPFREE TRADEFREE TRADE AGREEMENTGDPGDP PER CAPITAGLOBAL MARKETSGLOBALIZATIONGROSS DOMESTIC PRODUCTGROSS VALUEGROWTH IN TRADEGROWTH MODELSGROWTH POLICIESGROWTH POLICYGROWTH POTENTIALGROWTH THEORYHOUSINGHUMAN CAPITALHUMAN DEVELOPMENTHUMAN DEVELOPMENT INDEXIMPACT OF TRADEINCOME REDISTRIBUTIONINDIVIDUAL FIRMINDIVIDUAL FIRMSINDUSTRIAL REGIONSINFORMATION SYSTEMINFORMATION TECHNOLOGYINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE · INVESTMENTINSTITUTIONAL CAPACITIESINSTITUTIONAL ENVIRONMENTINSTITUTIONAL MODELSINTEREST RATEINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTMENT CLIMATE REFORMSINVESTMENT INCENTIVESLABOR FORCELABOR MARKETSLAGGING REGIONLAGGING REGIONSLIVING STANDARDSLOW-INCOME ECONOMIESMARGINAL COSTSMARKET ACCESSMETROPOLITAN REGIONSMIDDLE-INCOME COUNTRIESNATIONAL INCOMENATURAL RESOURCESPER CAPITA INCOMEPER CAPITA INCOMESPERIPHERAL REGIONSPOLICY ENVIRONMENTPOLITICAL ECONOMYPOLITICAL POWERPOOR POLICYPOWER PARITYPRIVATE INVESTORSPRIVATE SECTOR DEVELOPMENTPRODUCERSPRODUCTION PROCESSPROSPEROUS REGIONSPUBLIC GOODSPURCHASING POWERREGIONAL CHARACTERISTICSREGIONAL CONTEXTREGIONAL CONVERGENCEREGIONAL COOPERATIONREGIONAL DEVELOPMENTREGIONAL DEVELOPMENT POLICIESREGIONAL DIFFERENCESREGIONAL DIVERGENCEREGIONAL DUMMIESREGIONAL ECONOMIC DISPARITIESREGIONAL ECONOMICSREGIONAL ECONOMIESREGIONAL ECONOMYREGIONAL ENVIRONMENTREGIONAL FACTORSREGIONAL GROWTHREGIONAL INCOMEREGIONAL INCOME INEQUALITYREGIONAL INCOMESREGIONAL INEQUALITIESREGIONAL INEQUALITYREGIONAL INSTITUTIONSREGIONAL INVESTMENTREGIONAL INVESTMENT CLIMATEREGIONAL LEVELREGIONAL MARKETSREGIONAL OUTPUTREGIONAL PERFORMANCEREGIONAL POLICIESREGIONAL POLICYREGIONAL PRODUCTIONREGIONAL SCIENCEREGIONAL SYSTEMSREGIONAL TRADEREGIONAL TRADE INTEGRATIONREGULATORY BODIESREMOTE REGIONSRENT SEEKINGRESERVE BANKRURAL AREASSPARSELY POPULATED REGIONSSPATIAL DISTRIBUTIONSPATIAL INEQUALITIESSPATIAL INEQUALITYSPATIAL POLICYSPATIAL STRUCTURESTRUCTURAL CHANGESTRUCTURAL TRANSFORMATIONSUSTAINABLE GROWTHTAXTOTAL FACTOR PRODUCTIVITYTRADE COMPETITIVENESSTRADE EFFECTTRADE OPENNESSTRADE POLICYTRADING BLOCSTRANSACTION COSTSTRANSITION COUNTRIESURBAN DEVELOPMENTURBAN REGIONSURBANIZATIONVALUE ADDEDWAGESWEALTHWORLD ECONOMYWORLD MARKETSWORLD REGIONSWORLD TRADEWORLD TRADE ORGANIZATIONWorld Bank10.1596/978-0-8213-9893-7