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Spatial disparities in developing countries: cities, regions, and international trade

  • Anthony J. Venables

Spatial inequality in developing countries is due to the natural advantages of some regions relative to others and to the presence of agglomeration forces, leading to clustering of activity. This paper reviews and develops some simple models that capture these first and second nature economic geographies. The presence of increasing returns to scale in cities leads to urban structures that are not optimally sized. This depresses the return to job creation, possibly retarding development. Looking at the wider regional structure, development can be associated with large shifts in the location of activity as industry goes from being inward looking to being export oriented. Copyright 2005, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/jnlecg/lbh051
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Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 5 (2005)
Issue (Month): 1 (January)
Pages: 3-21

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Handle: RePEc:oup:jecgeo:v:5:y:2005:i:1:p:3-21
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  1. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  2. Henderson, J. Vernon & Shalizi, Zmarak & Venables, Anthony J., 2000. "Geography and development," Policy Research Working Paper Series 2456, The World Bank.
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  5. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
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  10. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, June.
  11. Abdel-Rahman, Hesham M. & Anas, Alex, 2004. "Theories of systems of cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 52, pages 2293-2339 Elsevier.
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