Regional development in Peru : trends and challenges

Contrary to the Chinese case, Peru does not have significant legislation restrictions to the internal flow of labor within its boundaries. In fact, based on recent data from population censuses, this chapter shows that internal migration flows follow clear signals of better economic opportunities and access to public services, contributing to the economic and social efficiency in the country. The main problems to address in the Peruvian case, in order to avoid any risk of falling into a middle income trap, are the low level and insufficient quality of investments in physical and human capital nationwide.