Can Backward Subnational Regions Catch Up with Advanced Ones?
This economic policy note examines the disparity in per capita incomes of both backward and advanced regions in developing countries, and explores a number of possible causes and policy intervention to bring about equalization (convergence). Among...
| Main Authors: | , |
|---|---|
| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1998/07/438763/can-backward-subnational-regions-catch-up-advanced-ones http://hdl.handle.net/10986/11542 |
| Summary: | This economic policy note examines the
disparity in per capita incomes of both backward and
advanced regions in developing countries, and explores a
number of possible causes and policy intervention to bring
about equalization (convergence). Among the causal factors
discussed are transportation costs, barriers to trade,
factor mobility, and internal migration. While recognizing
that the disparities are likely to remain substantial for
sometime, direct intervention is suggested to prod
convergence. One such area could be bringing together
private sector and other actors to develop an informal
marketplace to encourage appropriate clusters. The note
downplays the importance of large public infrastructure,
unless justified by private demand, strategic investments in
leading sectors, and equalizing fiscal transfers between
national and subnational regions. |
|---|