Spatial Inequality and Development

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What exactly is spatial inequality? Why does it matter? And what should be the policy response to it? These questions have become important in recent years as the spatial dimensions of inequality have begun to attract considerable policy interest. In China, Russia, India, Mexico, and South Africa, as well as most other developing and transition economies, spatial and regional inequality - of economic activity, incomes, and social indicators - is on the increase.

Spatial inequality is a dimension of overall inequality, but it has added significance when spatial and regional divisions align with political and ethnic tensions to undermine social and political stability. Also important in the policy debate is a perceived sense that increasing internal spatial inequality is related to greater openness of economies, and to globalization in general.

Despite these important concerns, there is remarkably little systematic documentation of what has happened to spatial and regional inequality over the last twenty years. Correspondingly, there is insufficient understanding of the determinants of internal spatial inequality.

This volume attempts to answer the questions posed above, drawing on data from twenty-five countries from all regions of the world. They bring together perspectives and expertise in development economics and in economic geography and form a well-researched introduction to an area of growing analytical and policy importance.

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Product Details

Meet the Author

Ravi Kanbur is T.H. Lee Professor of World Affairs and Professor of Economics at Cornell University and has been Professor of Economics at the University of Warwick and Chief Economist for Africa at the World Bank. Anthony J. Venables is Professor of International Economics at the London School of Economics and has been Professor of Economics at the University of Southampton and Trade Research Manager at the World Bank.

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Table of Contents

1. Introduction, Ravi Kanbur and Anthony J. Venables
2. Regional Output Differences in International Perspective, Bettina Aten and Alan Heston
3. Are Neighbors Equal? Estimating Local Inequality in Three Developing Countries, Chris Elbers, Peter Lanjouw, Johan Mistiaen, Berk Ozler and Ken Simler
4. Market Size, Linkages and Productivity: A Study of Japanese Regions, Donald R. Davis and David E. Weinstein
5. Externalities in Rural Development: Evidence for China, Martin Ravallion
6. Opening the Convergence Black Box: Measurement Problems and Demographic Aspects, Carlos Azzoni, Naercio Menezes-Filho and Tatiane Menezes
7. Convergence Club Empirics: Explanations of Unequal Growth Across Indian States, Sanghamitra Bandyopadhyay
8. Adverse Geography and Differences in Welfare in Peru, Javier Escobal and Maximo Torero
9. How Responsive is Poverty to Growth? A Regional Analysis of Poverty, Inequality and Growth in Indonesia, 1984-1999, Jed Friedman
10. Reforms, Remoteness and Risk in Africa: Understanding Inequality and Poverty During the 1990s, Luc Christiaensen, Lionel Demery and Stefano Paternostro
11. Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico, Andres Rodriguez-Pose and Javier Sanchez-Reaza
12. International Trade, Location and Wage inequality in China, Songhua Lin
13. Spatial Inequality for Manufacturing Wages in Five African Countries, Dirk Willem te Velde and Oliver Morrissey
14. Regional Poverty and Income Inequality in Central and Eastern Europe: Evidence from the Luxembourg Income Study, Michael Forster, David Jesuit and Timothy Smeeding
15. Quo Vadis: Inequality and Poverty Dynamics Across Russian Regions, Ruslan Yemtsov

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