The Internal Geography of Trade : Lagging Regions and Global Markets
Economic 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 poin...
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| Language: | English en_US |
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Washington, DC: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/04/17565833/internal-geography-trade-lagging-regions-global-markets http://hdl.handle.net/10986/13817 |
| Summary: | Economic 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' regions |
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