Abstract: Drawing on data from 25 countries from all regions of the world, this book addresses questions that have become very important in recent years, as the spatial dimensions of inequality have begun to attract considerable policy interest; what is spatial inequality? Why does it matter? And what should be the policy response to it? In China, Russia, India, Mexico, and South Africa, as well as in most other developing and transition economies, spatial and regional inequality – of economic activity, incomes, and social indicators – is on the increase.Spatial inequality is a dimension of overall inequality, but it has added significance when spatial and regional divisions align with political and ethnic tensions to undermine social and political stability. Also important in the policy debate is a perceived sense that increasing internal spatial inequality is related to greater openness of economies and to globalization in general.Despite these important concerns, there is remarkably little systematic documentation of what has happened to spatial and regional inequality over the last twenty years. Correspondingly, there is insufficient understanding of the determinants of internal spatial inequality.

Keywords: inequality, spatial models, developing economies, spatial inequality, globalization, regional economics, transition economies, regional inequality, social indicators