Place, Productivity, and Prosperity
Revisiting Spatially Targeted Policies for Regional Development
Arti Grover, Somik V. Lall, and William F. Maloney
2022 International Bank for Reconstruction and Development / The World Bank
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AttributionPlease cite the work as follows: Grover, Arti, Somik V. Lall, and William F. Maloney. 2022. Place, Productivity, and Prosperity: Revisiting Spatially Targeted Policies for Regional Development. Washington, DC: World Bank. doi:10.1596/978-1-4648-1670-3. License: Creative Commons Attribution CC BY 3.0 IGO
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ISBN (paper): 978-1-4648-1670-3
ISBN (electronic): 978-1-4648-1794-6
DOI: 10.1596/978-1-4648-1670-3
Cover image: Remedios Varo, Spiral Transit (1962). 2021 Remedios Varo, Artists Rights Society (ARS), New York / VEGAP, Madrid. Used with the permission of Artists Rights Society (ARS), New York / VEGAP, Madrid. Further permission required for reuse.
Cover design: Bill Pragluski, Critical Stages, LLC.
Library of Congress Control Number: 2021949870
Contents
Foreword |
Preface |
Acknowledgments |
About the Authors |
Abbreviations |
Executive Summary |
| Place, Productivity, and Prosperity: An Introduction |
Introduction |
The Attraction of Place-Based Policies |
Three Forces Shaping the Economic Landscape |
Lagging Places, Left-Behind Peopleand Perhaps, Missed Opportunities |
Notes |
References |
| Agglomeration Economies, Productivity, and the Persistence of Place |
Introduction |
A Virtuous Cycle of Economic Concentration, Higher Productivity, and More Prosperity |
The Developing Country Urban Productivity Puzzle |
Changing Drivers of Spatial Activity: The Future Isnt What It Used to Be |
Unpacking the Association of Density with Productivity |
Measuring the Benefits of Spatial Concentration |
Measuring the Full Costs of Agglomeration: Accounting for the Extra Expense of Working in Developing Country Cities |
Conclusion |
Annex 2A. Estimating Productivity, Marginal Cost, and Markups |
Notes |
References |
| The Promise of Labor Mobility |
Introduction |
The Evidence on Internal Migration |
The Barriers to Internal Migration |
Conclusion |
Notes |
References |
| Globalization and Digital Development: Bridging Distances within Countries |
Introduction |
Globalization and Regional Growth within Countries |
How Trade Costs, Infrastructure, and Institutions Affect Growth within Countries |
The Role of Digital Connectivity in Narrowing Disparities between Regions |
Conclusion |
Notes |
References |
| Lagging Places: Missed Opportunities, Left-Behind People |
Introduction |
Two Tales of Cities: Not Every Place Has Potential for Growth |
Why Is a Region Not Thriving Already? |
Three Arguments Often Used to Support Place-Based Policies for Nonviable Regions |
Complementarities, Silver Bullets, and Big Pushes |
Conclusion |
Notes |
References |
| A Framework for Appraising Place-Based Policies |
Introduction |
Principles for Appraising Place-Based Policies |
Dealing with Challenges in Fully Appraising Policies: Using the Framework as a Heuristic Tool |
Lessons from World Bank Evaluations of Projects to Enhance Agglomeration |
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