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The XXI century has reached the end of its first 20 years. Along the years, it has posed complex challenges to economists and economic geographers. For example, the results of elections and consultations in different countries have shown a strong sympathy with political positions that question the benefits of free international flows of goods, services, labour and capital. By the same token, some academics argue that despite international economics theory clearly acknowledges that free trade causes winners and losers, the expected higher gains have not been effectively used to compensate the losers. This article explores the main challenges of international economic integration in sub-national territories in Switzerland and Mexico to better understand the importance of delivering relevant and competent public policies based on territorial specificity. [ABSTRACT FROM AUTHOR]

Tiebout's “voting with the feet” proposition directs attention to the role of local authorities in delivering public services, and the implications of their decisions in people's choice of place of residence. Similarly, the bottom-up approach to economic development places a relevant role of local governments in promoting higher standards of living. By considering the latter, the former can be extended as citizens can choose a jurisdiction not only on the basis of a combination of taxes and public services but a broader mix of public goods. This paper analyses the effects of the fundamental features of the bottom-up or local economic development (LED) approach on population mobility among Mexican municipalities. This study finds significant evidence of a positive impact of LED elements on immigration during the period between 1990 and 2005. [ABSTRACT FROM AUTHOR]