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Thünen and the New Economic Geography

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  • FUJITA Masahisa

Abstract

In this paper, I explain Thünen's pioneering work on industrial agglomeration. In my opinion, Thünen's thinking on industrial agglomeration was not only amazingly advanced for his time, but in many respects remains novel even today. It is shown that if we unify Thünen's well-known theory on agricultural land use with this pioneering work on industrial agglomeration by using modern tools, then we essentially come up with a prototype of New Economic Geography model.

Suggested Citation

  • FUJITA Masahisa, 2011. "Thünen and the New Economic Geography," Discussion papers 11074, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:11074
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    7. Pontes, José Pedro & Pires, Armando J. Garcia, 2021. "A geographical theory of (De)industrialization," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 567-574.
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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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