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Krugman’s Economic Geography of Development: Negs, Pogs, and Naked Models in Space

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  • Paul A. David

    (Stanford University, All Souls College, University of Oxford, pad@leland.stanford.edu, pdavid@ermine.ox.ac.uk)

Abstract

Krugman’s models of spatial resource allocation and trade convey robust theoretical insights with a parsimonious lucidity that appeals strongly to modern economists’ tastes. Those great pedagogical virtues also may limit the models’ utility in guiding empirical research on the dynamic processes ostensibly being addressed. Three reasons for this worry are elaborated in this comment: (1) they are meant to explain a set of “stylized†facts that abstract from important observed in homogeneities in the geography of development; (2) the modeling emphasis on demand-side externalities diverts attention from supply-side forces making for industrial localization; and (3) Krugman’s treatment of the role of the state ignores inefficiencies arising from locational tournaments involving local government subsidization of firms in footloose industries.

Suggested Citation

  • Paul A. David, 1999. "Krugman’s Economic Geography of Development: Negs, Pogs, and Naked Models in Space," International Regional Science Review, , vol. 22(2), pages 162-172, August.
    • Handle: RePEc:sae:inrsre:v:22:y:1999:i:2:p:162-172
    DOI: 10.1177/016001799761012316
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    References listed on IDEAS

    as
    1. Paul David & Dominique Foray & Jean-Michel Dalle, 1998. "Marshallian Externalities And The Emergence And Spatial Stability Of Technological Enclaves," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(2-3), pages 147-182.
    2. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    3. Robin Cowan & William Cowan, 1998. "On Clustering in the Location of R&D: Statics and Dynamics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(2-3), pages 201-230.
    4. repec:hhs:iuiwop:430 is not listed on IDEAS
    5. David, Paul A. & Rosenbloom, Joshua L., 1990. "Marshallian factor market externalities and the dynamics of industrial localization," Journal of Urban Economics, Elsevier, vol. 28(3), pages 349-370, November.
    6. Ron Martin & Peter Sunley, 1996. "Paul Krugman's Geographical Economics and Its Implications for Regional Development Theory: A Critical Assessment," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 259-292, July.
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    Cited by:

    1. Gustavo Britto, 2008. "Industrial productivity growth and localisation in Brazil: a firm level analysis," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211548190, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Michael F. Goodchild & Luc Anselin & Richard P. Appelbaum & Barbara Herr Harthorn, 2000. "Toward Spatially Integrated Social Science," International Regional Science Review, , vol. 23(2), pages 139-159, April.
    3. Elisabetta Marinelli & Federica Bertamino & Ana Fernandez Zubieta, 2019. "Layers, levels and coordination challenges: comparing S3 governance in Puglia and Extremadura," JRC Research Reports JRC116116, Joint Research Centre.

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