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Porter vs Krugman : History, Analysis and Critique of Regional Competitiveness

Author

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  • Psofogiorgos Nikolaos ALEXANDROS
  • Theodore METAXAS

    (University of Thessaly, Department of Economics, Greece.)

Abstract

The subject of this study is to determine the competitiveness through an interdisciplinary approach of the theories of the new economic geography and regional economy. This article describes in detail the theory of competitiveness, which is defined differently by many authors, with particular emphasis on opposing views of Michael Porter and Paul Krugman. One of the first writers who stressed the importance of the geographical position was Michael Porter. In his model, the author emphasizes that the geographical concentration of firms enhances productivity, innovation and export sector. Following this theory, many authors have focused on the research of the "location problem ", which led to better connection of economics and geography. The result of these activities is the new guidelines that have been developed, such as the new theory of economic geography and regional economy. The new economic geography is mainly related to the Nobel prized, Paul Krugman, whose theories often conflict with those of Porter. This study initially sets out the views of both authors, in terms of competitiveness and then attempts to make a comparative analysis between the theories they developed.

Suggested Citation

  • Psofogiorgos Nikolaos ALEXANDROS & Theodore METAXAS, 2016. "Porter vs Krugman : History, Analysis and Critique of Regional Competitiveness," Journal of Economics and Political Economy, EconSciences Journals, vol. 3(1), pages 65-80, March.
    • Handle: RePEc:cvv:journ1:v:3:y:2016:i:1:p:65-80
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    Cited by:

    1. Szerb, László & Rideg, András & Hornyák, Miklós & Krabatné Fehér, Zsófia, 2023. "Magyarországi városrégiók versenyképességének mérése és elemzése [Measuring and analyzing the competitiveness of urban regions in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 119-148.
    2. Borys Volodymyrovich Burkynskyi & Alexei Borisovich Alyokhin & Anna Bogdanovna Brutman & Zoia Nikolaevna Sokolovska & Nina Ippolytivna Khumarova, 2019. "Competitiveness and Related Concepts: A Logical Approach to Definition," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 18-44.
    3. Tatyana Boikova & Sandija Zeverte-Rivza & Peteris Rivza & Baiba Rivza, 2021. "The Determinants and Effects of Competitiveness: The Role of Digitalization in the European Economies," Sustainability, MDPI, vol. 13(21), pages 1-22, October.

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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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