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Topic dossier · Economic Development

Regional economic development

Within countries, some cities and regions prosper while others decline, leaving gaps in income, jobs and services that persist for decades. Agglomeration, infrastructure, institutions and shocks such as mine closures or trade competition all shape where growth happens. This page sets out how regional disparities form and change, how they are measured, and what evidence serves the national and local authorities that seek to narrow them.

The interactive map needs JavaScript; the layer list and sources are below.

Layers 3

Activity and hazards, for this page

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

For regional economic development, in GCRI's spatial-intelligence reading, the map opens on night lights, population density and true-colour imagery with true colour from NASA GIBS, framed on Africa; every other NASA layer, live feed and forecast waits in the layer list.Satellite and model products as NASA publishes them, each with its own date; indicators, not assessments of any place; claim ceiling INTEGRATED.

Data: NASA GIBS · ASTER GDEM · Blue Marble · © OpenStreetMap contributors · Natural Earth · GDACS · Copernicus Sentinel-2 L2A · NASA HLS S30Sources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). CC BY 4.0
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • MODIS land products (vegetation indices, gross primary production, land cover), NASA LP DAAC and LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • © OpenStreetMap contributors (ODbL), via NASA GIBS (coastlines, boundaries, roads and place names). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). ODbL
  • Blue Marble, NASA Earth Observatory; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Context on the globe and flat map: coastlines, boundaries, roads and place names from NASA GIBS reference layers (OpenStreetMap data, ODbL, © OpenStreetMap contributors); Blue Marble imagery as an optional base; 3D terrain and the elevation read-out from the ASTER GDEM elevation colour index (5 m to 200 m classes, exaggerated for legibility). Boundaries are drawn as published and imply no position on any territory.
  • Globe: MapLibre GL JS 6.9.1, BSD-3-Clause, © MapLibre contributors.
  • Live: GDACS (EC JRC / UN OCHA) Events are indicative, not official warnings.
  • Observed (EO): Copernicus Sentinel-2 L2A (contains modified Copernicus Sentinel data 2026), Microsoft Planetary Computer
  • Observed (EO): NASA HLS S30 (contains modified Copernicus Sentinel data 2026). We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS).
  • Optional layers (35 sources in the layer list: live, forecast, observed and context) print their provider credit on the map and here when switched on; forecasts are model output and derived indices are estimates.

Layers and dates

  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • True colour: VIIRS NOAA-20 corrected reflectance, NASA LANCE · 13 Oct 2026
  • Land cover type (IGBP), yearly: MODIS Terra and Aqua land cover (MCD12Q1), NASA LP DAAC · 2024
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026
  • Enhanced vegetation index, rolling 8 days: MODIS Terra EVI, NASA LANCE · 13 Oct 2026

01In brief

The short answer.

Regional economic development is the growth and transformation of economies at the level of regions and cities within a country. Agglomeration concentrates growth in leading places, local shocks persist, and connectivity and local institutions shape whether lagging regions can catch up.

02Console

Regional development dashboard, in outline.

The working screen behind this subject: its structure, terms and states. Names are placeholders and values illustrative.

Regional development dashboard: the screen's structure, terms and states for Regional economic development.Placeholder names and illustrative values; a design, not a record or a live system.
03The question

Regional economic development: how the risk develops.

Regional specialisation and place-based policy. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Agglomeration concentrates growth

Firms and skilled workers cluster where markets, suppliers and ideas are dense, raising productivity in leading cities and leaving others behind.

Mechanism

Local shocks persist

When a dominant employer or industry closes, job losses spread to local services and tax bases, and recovery can take a generation.

Mechanism

Connectivity shapes opportunity

Roads, power, broadband and transport links determine whether lagging regions can reach markets and attract investment.

Mechanism

Local institutions matter

The capacity of local governments to plan, invest and deliver services affects whether national support turns into development.

04Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
Agglomeration economiesProductivity gains firms and workers get from locating near one another.
Lagging regionA region with persistently lower income or growth than the national average.
Place-based policyA policy targeted at a specific geographic area, such as a region, city or district.
05Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
GDP per capita by regioncurrency unitsannualRegional accountsOFFICIAL
Regional unemployment ratepercentquarterlyLabour force surveysOFFICIAL
Night-time light intensityradiancemonthlySatellite night lightsOBSERVED
Access to marketstravel time to nearest cityper assessmentAccessibility analysisMODELLED
Regional poverty ratepercentper surveyHousehold surveysESTIMATED
Public investment per capita by regioncurrency unitsannualBudget dataOFFICIAL
06Canvas

From sources to decisions.

The topic as a computational graph: named sources feed the methods, an evidence review gates the outputs, and the decisions stay with the authorities that hold them.

Pipeline canvas · Regional economic development as a run graphDesign, not a record
Regional economic development: how an economic shock propagatesA shock to prices or demand propagates through input-output linkages to sector output, then to jobs and household income, and to public finances; policy responses are tested against the same chain. Design of the process, not a record of a run.

Fig. 02Nodes carry their type, two metric rows and a state; connectors show what feeds what; dashed frames name the owners; the timeline is the cadence. Design of the pipeline, not a record of a run.

07Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
OECD Regional StatisticsRegional economic, social and environmental dataPublic, OECD terms
NASA Black Marble and VIIRS night lightsNight-time light as a proxy for activityOpen, NASA data policy
Global Data Lab subnational indicatorsSubnational development indicators from surveysOpen, licence to check
Malaria Atlas Project accessibility mapsTravel time to citiesOpen, CC BY 4.0
National census and household surveysRegional demographics and povertyLicence per survey
08Decisions

Who decides, and what the evidence serves.

Economic Development prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Ministries of planning and regional developmentWhere to direct investment and supportDisparity profiles; policy evaluations
Local governmentsWhich local development strategies to pursueLocal shock and connectivity evidence
Infrastructure agenciesWhich connections would open markets for lagging regionsAccessibility evidence

Outputs this topic produces

  • Regional disparity profiles
  • Evaluations of place-based policies
  • Shock and recovery analyses for local economies
  • Evidence notes for regional strategies
09Core questions

What experts ask about regional development.

  • Why does economic activity concentrate in some places?
  • Why do some regions recover from shocks while others decline for decades?
  • How do infrastructure, skills and institutions shape regional outcomes?
  • When are place-based policies more effective than policies aimed at people?
  • How do climate hazards and transitions affect regions differently?
10Mechanisms and drivers

What shapes regional outcomes.

Agglomeration economies explain much of spatial concentration: firms and workers are more productive when close to each other, sharing suppliers, labour pools and knowledge. This creates self-reinforcing growth in successful places and can leave others behind.

Regions specialised in a single industry are exposed to shocks to that industry. When a major employer closes or a sector declines, effects spread through local suppliers, services and public revenues. Research on regions affected by trade shocks has found that labour market effects can persist for many years, with lower employment and incomes.

Climate change adds new pressures. Coastal, agricultural and fossil-fuel-dependent regions face specific risks, and energy transitions create opportunities in some places and losses in others.

11Methods and data

Methods and their limits.

  1. 01

    Spatial economic data

    Regional accounts, employment and business registers. Regional data are often less timely and reliable than national data.

  2. 02

    Shift-share and specialisation analysis

    Decomposing regional change into national, sectoral and local components. Descriptive, not causal.

  3. 03

    Quasi-experimental evaluation

    Assessing place-based policies using causal inference. Spillovers to neighbouring areas complicate estimates.

  4. 04

    Agent-based models

    Simulating firm and household location using complex systems methods. Validation is difficult.

Regional results are sensitive to boundaries and scale; analyses state the geography used.

12Methods

How it is studied, and what the methods cannot say.

13Questions

Questions and answers.

Why do regional gaps persist?
Because agglomeration attracts firms and skilled workers to leading places, while lagging regions lose people, investment and tax base, which reinforces the gap.
What is a place-based policy?
A policy targeted at a specific region or locality, such as infrastructure, enterprise zones or local skills programmes.
Can satellite night lights measure economic activity?
They are a useful proxy where statistics are weak, but they miss activity that produces little light, such as farming.
Should policy help places or people?
The evidence suggests both approaches have roles. The topic examines when each has worked.
Why do some regions not recover?
Loss of a core industry can erode skills, firms and public revenues together, making recovery slow without new activity.
Does the platform work with local governments?
Engagement routes open when terms and capacity exist. Enquiries are welcome now.
How does climate change affect regional economies?
Unevenly. Coastal, agricultural and fossil-fuel-dependent regions face specific risks, while transitions bring new activity to some places and losses to others.
Economic Development

Bring your expertise to this field.

The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.