Description: Rethinking Economic Growth in a Globalizing World : An Economic Geography Lens

Rethinking Economic Growth in a Globalizing World : An Economic Geography Lens

This paper argues that cumulative causation processes are fundamental to understanding growth and development. Such processes derive from spatially concentrated increasing returns to scale including thick market effects, knowledge spillovers, secto...

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Bibliographic Details
Main Author:	Venables, Anthony J.
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	AVERAGE COSTS BID CAPITAL INVESTMENTS CHECKS CHLORINE CLIMATE CHANGE COMPARATIVE ADVANTAGE COMPETITIVE MARKET CONSUMERS COORDINATION FAILURE COORDINATION FAILURES COUNTRY CASE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT PRACTITIONERS DIMINISHING RETURNS DIMINISHING RETURNS TO SCALE DIVISION OF LABOR ECONOMIC ACTIVITY ECONOMIC BENEFITS ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMIC POLICIES ECONOMIC POLICY ECONOMIC PROCESSES ECONOMIC PROGRESS ECONOMIC REFORMS ECONOMIC RESEARCH ECONOMIC REVIEW PAPERS ECONOMIC THEORY ECONOMICS ECONOMIES OF SCALE EMPIRICAL WORK EMPLOYMENT ENVIRONMENTAL EQUILIBRIUM EQUIPMENT EXPORT DIVERSIFICATION EXPORT GROWTH EXPORTS EXTERNALITIES EXTERNALITY FACTOR ENDOWMENTS FACTOR MARKETS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL SECTOR FISCAL POLICIES FOREIGN MARKET FOREIGN MARKETS GDP GDP PER CAPITA GENERAL EQUILIBRIUM GLOBAL ECONOMY GLOBAL MARKETS GLOBALIZATION GOVERNMENT INVESTMENT GOVERNMENT SPENDING GREENHOUSE GASES GROWTH PROCESS GROWTH PROSPECTS GROWTH THEORY HUMAN CAPITAL INCOME INCOME DISTRIBUTIONS INCOME GROWTH INCOME LEVELS INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL POLICY INDUSTRIALIZED COUNTRIES INFORMAL ECONOMY INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVESTING INVESTMENT CLIMATE INVESTMENT CLIMATES LABOR FORCE LABOR MARKET LABOR MOBILITY LEVEL PLAYING FIELD LONG RUN LONG-RUN GROWTH LOW-INCOME COUNTRIES MACROECONOMIC ENVIRONMENT MACROECONOMICS MARKET ACCESS MARKET FAILURES MARKET MECHANISM MARKET MECHANISMS MARKET SIZE MONETARY FUND MULTIPLE EQUILIBRIA NATURAL RESOURCES NPL OPPORTUNISTIC BEHAVIOR PECUNIARY EXTERNALITIES PER CAPITA INCOME POLICY CHANGE POLICY IMPLICATIONS POLICY INSTRUMENT POLICY INTERVENTION POLICY ISSUES POLICY MAKERS POLICY MEASURES POLICY RESPONSES POLITICAL ECONOMY POLLUTION POVERTY REDUCTION PRICE CHANGES PRICE DIFFERENCES PRO-POOR PRO-POOR GROWTH PRODUCERS PRODUCT DIFFERENTIATION PRODUCT MARKETS PRODUCTION PATTERNS PRODUCTION PROCESS PRODUCTIVITY PROPERTY RIGHTS PUBLIC GOODS PUBLIC SECTOR RAPID GROWTH RECIPROCAL EXTERNALITIES RELATIVE INCOME RENTS RETURN RULE OF LAW SCALE EFFECTS SECTOR ACTIVITY SECURE PROPERTY RIGHTS SUPPLIERS TERMS OF TRADE THEORETICAL MODELS TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADING VALUE ADDED WAGE RATES WAGES WORLD INCOME DISTRIBUTION
Online Access:	http://documents.worldbank.org/curated/en/919071468340169554/Rethinking-economic-growth-in-a-globalizing-world-an-economic-geography-lens http://hdl.handle.net/10986/28041

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Summary:	This paper argues that cumulative causation processes are fundamental to understanding growth and development. Such processes derive from spatially concentrated increasing returns to scale including thick market effects, knowledge spillovers, sectoral and urban clustering, and self-reinforcing improvements in physical and social infrastructure. These sources of agglomeration have been extensively analyzed in the economic geography literature. They imply that spatial unevenness in economic activity and incomes is an equilibrium outcome. Growth tends to be 'lumpy,' with some sectors in some countries growing fast while other countries lag. The policy challenge is to lift potential new centers of economic activity to the point where they can reap the productivity and investment climate advantages of increasing returns and cumulative causation.

Rethinking Economic Growth in a Globalizing World : An Economic Geography Lens

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