http://siteresources.worldbank.org/INTABCDEWASHINGTON2001/Resources/Venables-Paper.pdf

This paper evaluates what some writers have predicted that new technologies mean the 'death of distance', allowing suitably skilled economies to converge with high-income countries. It argues those geography matters for international income inequalities, and those new technologies will change, but not abolish this dependence. Some activities may become more entrenched in high-income countries than they are at present. Others - where information can be readily codified and digitized - will relocate, but typically only to a subset of lower income countries. These countries will benefit, both other countries will continue to experience the costs of remoteness.