In this seminar, Yusniliyana Yusof will present her PhD findings on the spatial balance of socio-economic development across states in Malaysia. Institutional factors are found to be important in explaining spatial differentials in development outcomes. Her research also finds that convergence in state government development expenditure has fostered more equitable development from a spatial viewpoint. The presentation will review the possible role of fiscal decentralisation as a solution for escaping from geographically-focused income traps.