Abstract
Evidence of income divergence at various scales provides the motivation for examining the role of selected inertia and endogenous factors in the development process with particular emphasis on the role of interregional dynamics and policy. A body of work on interregional dynamics that relies on an extended Lotka-Volterra model to keep track of the structure of spatial dependence among regions is briefly considered. It offers a promising starting point for an improved understanding of the factors behind trends in income and for expanding policy options. Examples from China and India but with a greater emphasis on India are provided.JEL Classification: C13, R11
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