of National Economic Policies on Subnational Regions
economic policies may have very different effects on subnational regions.
For example, policies that encourage export growth will benefit regions
with good locational access to foreign markets, while high interest rates
are likely to hit hardest areas dominated by heavy industry. Governments
are often very concerned about such subnational effects, but thus far,
work on such issues is relatively underdeveloped in the Bank. In this
section, we selectively present case studies of various national policies
that have differential subnational impacts including: macroeconomic-stabilization,
trade liberalization, exchange rate adjustment, and industrial incentives.
As cross-border issues often have considerable regional significance,
we also include references to the recent work on frontier regions.