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
Highlights
In developing countries, the economic activities are unevenly distributed, the economic growth becomes geographically unequal
In the developing countries, the economic activities are agglomerated in large urban areas
There is a strong link between all the location choices that drive companies to concentrate itself in a space
Summary
The economic activities are unevenly distributed, the economic growth becomes geographically unequal. Public authorities must play a significant role to ensure that the economic catch-up process will be sufficiently rapid. They must implement policies of local growth to correct spatial inequalities and to help the regions which have been less favored by nature and history. The company combines multiple resources in skills, informal relationships, technologies, etc. These resources are not present everywhere, which generates an unequal distribution of the economic activities and an uneven regional development (Puga, 1999; Borowiecki, 2014)
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