The existence and persistence of regional income disparity, caused by either structural or policy reasons or both, has economic as well as political implications for developing countries. There are a plethora of examples in Asia and Africa where the people of depressed economic regions have demonstrated their resentment and engaged in secessionist movements of one form or the other. Even if regional income disparity does not always lead to a secessionist movement, it can slow down national integration and retard the process of economic development. Therefore, it is widely acknowledged that regional development is as important as national development on the grounds of both equity and political sustainability2