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From The World Bank Group Documents and Reports Archive
World Development Reports

Public Disclosure Authorized by the World Bank - 47242
Reshaping Economic Geography in East Asia - 2009
Edited by Yukon Huang and Alessandro Magnoli Bocchi,
a companion volume to the World Development Report 2009, brings together noted scholars to address the spatial distribution of economic growth in Asia. It reveals how the new economic geography is reshaping development objectives: from initiatives to foster growth via enhanced agglomeration and connectivity to the world economy, to programs that channel resources to lagging regions. Key themes include how East Asian governments have dealt with agglomeration economies, urbanization, and regional disparities; improving connectivity with infrastructure investments; and eliminating barriers both inside and outside borders to favor the movement of labor, goods, and services.
This volume will be of great interest to readers working in the areas of economic policy, poverty reduction and urban-rural development strategies, and transport-led infrastructure policy.

Table of Contents
Front cover - Contents, Boxes, Figures, Tables and Foreword
Preface by Yukon Huang and Alessandro Magnoli Bocchi
Acknowledgments, Contributors, Abbreviations


1. Regional integration, agglomeration, and income distribution in East Asia
Nobuaki Hamaguchi
Production networks in East Asia
Regional income inequality

2. Geography of cluster-based industrial development
Keijiro Otsuka and Tetsushi Sonobe
A theory of cluster-based industrial development
Evidence from case studies
Evidence of changing industrial locations
Policy implications

3. Rural clustering at incipient stages of economic development: hand-weaving clusters in Lao PDR
Akihiko Ohno
Market segregation at an incipient stage of development
Hypotheses on the emergence of traders
Profile of the Lao PDR hand-loom industry
Marketing and contractual arrangements
Weaving clusters and traders
Decline of trust
Retailers as urban-based traders

4. Spatial networks, incentives, and the dynamics of village economies: evidence from Indonesia
Futoshi Yamauchi, Megumi Muto, Reno Dewina, and Sony Sumaryanto
Descriptive analyses
Empirical framework
Empirical results
Policy discussion

5. The Iskandar Development Region and Singapore
Manu Bhaskaran
Key factors driving the relationship between the two regions
Potential synergies between Singapore and the IDR
The way forward
Conclusion: can these obstacles be overcome?

6. Spatial integration and human transformations in the Great Mekong subregion (GMS)
Jonathan Rigg and Chusak Wittayapak
The GMS: and idea becomes a subregion
Openness, progress, and inequality in the GMS
Scales and sites: the empirics of spatial transformations in the GMS
Agents, agency, and impacts of spatial transformations in the GMS
Policies and politics of spatial transformation


7. Rural development and issues in Vietnam: spatial disparities and some recommendations
Dang Kim Son
Current spatial disparities and policy issues
Disparities between rural and urban areas
Regional disparities
Causes of disparities

8. Economic geography of Indonesia: location, connectivity, and resources
Hall Hill, Budy P. Resosudarmo, and Yogi Vidyattama
Economic geography
Regional economic growth and change
Regional inequality and convergence

9. Spatial considerations on decentralization and economies of concentration in Indonesia
Francisco Javier Arze del Granado
Decentralization of expenditures, urban-to-rural migration, and urban density in congested regions
Agglomeration economies
Room for further decentralization and policy implications

10. Spatial agglomeration, firm productivity, and government policies in Indonesia: concentration and deconcentration in the manufacturing sector
Ari Kuncoro
Evolution of the manufacturing industry's spatial configuration in Java
Choice of firm location
Empirical methodology: externalities and firm decentralization

11. Spatial disparities and development policy in the Philippines
Arsenio M. Balisacan, Hall Hill, and Sharon Faye Piza
Regional development patters
Determinants of local growth and poverty reduction

12. Spatial disparities in Thailand: does government policy aggravate or alleviate the problem?
Nitinant Wisaweisuan
Growth and spatial disparities
Explaining spatial disparities
Attempts to alleviate the problem


13. Reshaping economic geography in China
Yukon Huang and Xubei Luo
China's historic and geographic legacy
Accelerating growth: coordinating structural, incentive, and fiscal policies
Spatial factors and government policies: growth and equity implications
Looking to the future

14. The political economy of government policies toward regional inequality in China
Yang Yao
Regional disparities in China
The path to the uneven development model
Preferential government policies and economic geography
Recent government initiatives to reduce regional disparities
Alternative ways to address regional disparities

15. Is China sacrificing growth when balancing interregional and urban-rural development?
Zhao Chen and Ming Lu
Industrial agglomeration and city development
China's urban-rural and interregional development: is there a tradeoff between efficiency and equality?
Interregional and urban-rural economic development: policy adjustment and fiscal transfer
Conclusions and policy implications

16. Industrial agglomeration and economic performance in transitional China
Canfei He
Theoretical understanding of industrial agglomeration in China
Industrial agglomeration and industrial specialization in China
Industrial agglomeration and labor productivity in China
Industrial clusters in China: a county-level analysis

17. Capital allocation, regional specialization, and spillover effects in China
Chong-En Bai and Xu Lin
Returns to capital across provinces
Regional specialization
Spatial factors behind productivity growth

18. Coastal China's urban-rural spatial restructuring under globalization
Yue-man Yueng and Jianfa Shen
Guangdong and the Pearl River delta
Shanghai and the Yangtze River delta
The Bohai Bay region

19. A history of the Republic of Korea's industrial structural transformation and spatial development
Sam Ock Park
Industrial policies, structural changes of industry, and spatial transformation
Spatial development and change
Policy implications


20. Lessons from experience: reshaping economic geography in East Asia
Yukon Huang and Alessandro Magnoli Bocchi
Context: the rise of regionalism and the role of production-sharing networks
Accompanied by increasing disparities
The new economic geography
Vietnam and Lao PDR: emerging spatial patterns at low income levels
Indonesia, the Philippines, and Thailand: diverse settings and varied outcomes in three middle-income ASEAN countries
China: agglomeration, rapid growth, and major spatial consequences
Korea: from developing to developed status and eventual equalization
Lessons learned


Background Papers

World Development Report 2009 "Reshaping Economic Geography"
Alva, M., and A. Behar. " Factors that contribute to (or detract from) successful outcomes in African Regional Agreements."

Behar, Alberto. " Neighbourhood growth effects: an annual panel data approach."

Brülhart, Marius. " An Account of Global Intra-Industry Trade, 1962-2006."

Calě, Massimiliano. " Urbanisation, inequality and economic growth: Evidence from Indian states."

Clemens, Michael, C. Montenegro, and L. Pritchett. " The Place Premium: Wage Differences for Identical Workers accross US Borders."

Coulibaly, Souleymane. " On the Complementarity of Regional and Global Trade."

Crafts, Nicholas. " European Growth in the Age of Regional Economic Integration: Convergence Big Time?"

Hewings, Geoffrey J.D., Edward Feser, and Ken Poole. " Spatial/Territorial Development Policies in the United States."

Hirotsugu, Uchida and Andrew Nelson. " Agglomeration Index: Towards a New Measure of Urban Concentration."

Kilroy, Austin. " Intra-urban spatial inequalities: cities as ‘urban regions.’"

Kilroy Austin. " The role of cities in post-war economic recovery."

Kroehnert, S. and S. Vollmer.  " Where Have All The Young Women Gone?: Gender-Specific Migration from East to West Germany."

Lall, Somik, Christopher Timmins, and Shouyue Yu. " Moving to Opportunity: Successful Integration or Bright Lights?" (Presentation)

Manners, P. and A. Behar. " Trade in sub-Saharan Africa and opportunities for Low Income Countries."

Mayer, Thierry. " Market Potential and Development: A background paper for the World Development Report."

Montenegro, Claudio E., and Maximilian L. Hirn. " A New Disaggregated Set of Labor Market Indicators using Standardized Household Surverys from Around the World."

Nelson, B. and A. Behar. " Natural Resources, Growth and Spatially-Based Development: A View of The Literature."

Satterthwhaite, David. " Expanding the supply and reducing the cost of land for housing in urban areas in low- and middle-income nations."

te Velde, Dirk William.  " Regional integration, growth and concentration."

Treyvish, Andrey. " The Downfall of the Soviet Union: A Spatial Explanation."

Vollmer, Sebastian, Inmaculada Martínez-Zarzoso, Felicitas Nowak-Lehmann D. and Nils-Hendrik Klann.  " EU-ACP Economic Partnership Agreements – Empirical Evidence for Sub-Saharan Africa."

" Intra-Urban Graphs." 

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