Spatial Inequality and Development

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.

1 - Introduction
2 - Regional Output Differences in International Perspective
3 - Are Neighbors Equal? Estimating Local Inequality in Three Developing Countries
4 - Market Size, Linkages and Productivity: A Study of Japanese Regions
5 - Externalities in Rural Development: Evidence for China
6 - Opening the Convergence Black Box: Measurement Problems and Demographic Aspects
7 - Adverse Geography and Differences in Welfare in Peru
8 - How Responsive is Poverty to Growth? A Regional Analysis of Poverty, Inequality and Growth in Indonesia, 1984-1999
9 - Reforms, Remoteness and Risk in Africa: Understanding Inequality and Poverty During the 1990s
10 - Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico
11 - International Trade, Location and Wage inequality in China
12 - Spatial Inequality for Manufacturing Wages in Five African Countries
13 - Regional Poverty and Income Inequality in Central and Eastern Europe: Evidence from the Luxembourg Income Study
14 - Quo Vadis: Inequality and Poverty Dynamics Across Russian Regions

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.