The global economy has undergone profound transformations over the past few decades, driven by advancements in technology, shifts in political power, and the growing interdependence of markets and regions. My dissertation, Digital Threads and Regional Ties: The Study of Global Services Trade and Regional Favoritism, uncovers factors that contribute to a persistence of regional economic disparities inspite the opportunities brought about by this transformation. It explores two themes central to this evolution - the rise of services trade, and the interplay between political power and regional resource allocation. By combining innovative data sets with causal inference methods and structural modeling, I delve into these themes to uncover the patterns and mechanisms driving regional and sectoral economic outcomes.
At its core, this dissertation is motivated by two interrelated questions. First, to what extent can the integration of global digital markets level the economic playing field for regions in developing countries? Second, how do the distribution of political power and the allocation of resources influence the geography of economic development? In addressing these questions, this work documents frictions that hinder global inclusive growth and brings evidence that points to the importance of investments in human capital and strong institutions to alleviate them. The importance of addressing regional disparities in income and opportunity is powerfully highlighted by the current political turmoil brought about by populist political agendas instrumentalizing these inequalities and the increasing migration flows caused by them.
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