As different communities may not have similar comparative advantage due to variations in natural resource composition and abundance, foreign trade and globalization are thought to play a key role in influencing spatial inequality as well. In particular, economies undergoing rapid trade liberalization have been observed to actually have increases in poverty rates and income inequality, in spite of nation-wide benefits of economic growth being realized, as urban-rural gaps tend to widen. Additionally, migration patterns from rural to urban areas in developing nations are observed to be a labor market adjustment to an increasing shift in importance from agriculture to manufacturing.“Lall, Somik V.; Selod, Harris; Shalizi, Zmarak. 2006. Rural-Urban Migration in Developing Countries : A Survey of Theoretical Predictions and Empirical Findings. Policy Research Working Paper; No. 3915. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/8669 License: CC BY 3.0 IGO.”
