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Spatial implications of international trade under the new economic geography approach

Ramírez Grajeda, Mauricio and de León Arias, Adrián (2009): Spatial implications of international trade under the new economic geography approach.

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Abstract

In 2008, Paul Krugman from Princeton University was awarded the Nobel Prize in Economic Sciences by the Central Bank of Sweden, for his “analysis of trade patterns and location of economic activity”. In this paper we survey the literature, known as the New Economic Geography (NEG), launched by Krugman (1991). In particular, we focus on four topics: (i) NEG roots, (ii) NEG rationale; (ii) the spatial impact of international trade on global economic imbalances; and (iv) the impact of international trade on urban structure.

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