1. The provision of aid and other assistance to regions which are less economically developed.

2. The differential in economic outcomes. Ezcurra and Rapún (2006) Eur. Urb. & Reg. Studs 13, 4 explore the relationship between regional inequality and economic development level in fourteen western European countries for the period 1980–2002, finding that, beyond a given level of per capita GDP, regional inequality can be seen to decrease. McCoe et al. (2004) TIBG 29, 4, in a study of BMW in Germany and Thailand, argue that the ‘strategic coupling’ of the global production networks of firms and regional economies ultimately drives regional development. Liard-Muriente (2007) Area 39, 2 highlights the potential opportunities and pitfalls when designing incentive strategies.