ABSTRACT
This chapter argues that Krugman's New Economic Geography (NEG) model representing a great advance in economics can, in fact, shed new light on the development of rural regions. It defends the case that different growth patterns between regions, which could explain income differentials, are more related to the capacity to conceive and implement Corporate Strategies than with intrinsic sector differences, regarding their importance in Gross Domestic Product (GDP). The chapter overviews the evolution of economic theories explaining growth and development. It shows how the development of economics has led to the emergence of the NEG body of knowledge. The chapter expresses the belief that, by developing endogenous resource capabilities able to put in place real development strategies starting with firms then regions, in particular rural/agricultural regions will be able to break away from this apparent fatal destiny regarding their development pattern.
