  We construct the holographic type nonlocal effective action in two-brane
Randall-Sundrum model and show that it describes a phase transition between the
local and nonlocal phases of the theory -- a cumulative effect of the tower of
massive Kaluza-Klein modes. We show that the corresponding renormalization
group flow interpolating between the limits of short and long interbrane
separations can be dynamically mediated by a repulsive interbrane potential
that gives rise to braneworld cosmological scenarios with diverging branes.
