After decades of rising global economic integration, the world economy is now fragmenting. To measure this phenomenon, we introduce an index of geopolitical fragmentation derived from various empirical indicators. This index is developed using a flexible dynamic factor model with time-varying...

Spatial inequality in global economic development has left Africa with the least progress in improving living standards among developing regions of the world. Moreover, there are strong neighborhood effects within Africa. This paper revisits the explanation of unequal growth across countries in...

Trade is spatial in nature. However, when specifying trade regressions, spatial issues are typically not accounted for in a satisfactory way. We specify a trade model which relates to the effects that the introduction of the euro had on exports for the euro countries. Our model contains country...

This chapter surveys the theoretical and empirical literature on the relationship between the spatial distribution of economic activity and transportation costs. We develop a multiregion model of economic geography that we use to understand the general equilibrium implications of transportation...

The diffusion of spillovers in the EU regions has often been discussed in recent years. Many studies have dealt with the issue of convergence and divergence. However, the theoretical explanation of spillovers and the effects of the integration on regional interaction have usually been neglected....