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Paul Krugman: Trade and Geography - Economies of Scale, Differentiated Products and Transport Costs

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  • Committee, Nobel Prize

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    Abstract

    Scientific Background, The Nobel Prize in Economic Sciences 2008. Over the centuries, international trade and the location of economic activity have been at the forefront of economic thought. Even today, free trade, globalization, and urbanization remain as commonplace topics in the popular debate as well as in scholarly analyses. Traditionally, trade theory and economic geography evolved as separate subfields of economics. More recently, however, they have converged become more and more united through new theoretical insights, which emphasize that the same basic forces simultaneously determine specialization across countries for a given international distribution of factors of production (trade theory) and the long-run location of those factors across countries (economic geography).

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    File URL: http://www.nobelprize.org/nobel_prizes/economics/laureates/2008/advanced-economicsciences2008.pdf
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    Bibliographic Info

    Paper provided by Nobel Prize Committee in its series Nobel Prize in Economics documents with number 2008-2.

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    Length: 24 pages
    Date of creation: 13 Oct 2008
    Date of revision:
    Handle: RePEc:ris:nobelp:2008_002

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    Web page: http://www.nobelprize.org

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    Keywords: Trade; Geography;

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    1. Masahisa Fujita & Paul Krugman, 2003. "The new economic geography: Past, present and the future," Economics of Governance, Springer, vol. 83(1), pages 139-164, October.
    2. Krugman, Paul R & Venables, Anthony J, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 857-80, November.
    3. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    4. Grossman, G.M. & Helpman, E., 1988. "Product Development And International Trade," Papers 132, Princeton, Woodrow Wilson School - Public and International Affairs.
    5. Markusen, James R., 1984. "Multinationals, multi-plant economies, and the gains from trade," Journal of International Economics, Elsevier, vol. 16(3-4), pages 205-226, May.
    6. Chipman, John S, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 347-85, August.
    7. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Scholarly Articles 3445092, Harvard University Department of Economics.
    8. repec:fth:iniesr:430 is not listed on IDEAS
    9. repec:fth:michin:324 is not listed on IDEAS
    10. James R. Melvin, 1969. "Increasing Returns to Scale as a Determinant of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 2(3), pages 389-402, August.
    11. Abdel-Rahman, H. M., 1988. "Product differentiation, monopolistic competition and city size," Regional Science and Urban Economics, Elsevier, vol. 18(1), pages 69-86, February.
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