Spatial Distribution of Economic Activities, Growth Policies and Externalities in Developing Countries

Abstract

In the developing countries, development policies have generated an uneven development. The economic activities are unevenly distributed and regional disparities are becoming increasingly noticeable. The role of growth policies is decisive in bridging spatial inequalities and enabling less-favored regions to catch up on their economic backwardness. The objective of this article is to clarify the stakes and levers of local growth policies in the current context of the developing countries and to understand the relationship between externalities and agglomeration of firms in order to influence the parameters of externalities and to allow a better distribution of economic activities in space.

Keywords: Firm; Growth; Agglomeration Economies; Policy Making