Putting the “New” into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics

Author: Neary, J. Peter

Source: Scandinavian Journal of Economics, Volume 111, Number 2, June 2009 , pp. 217-250(34)

Buy & download fulltext article:

Price: $48.00 plus tax (Refund Policy)

Abstract:

This paper reviews the scientific contributions of Paul Krugman to the study of international trade, on the occasion of his receipt of the 2008 Nobel Memorial Prize in Economics. A simplified exposition is presented of some of his principal findings, including: the effects of trade on firm scale and product diversity in a general model of monopolistic competition; the integration of monopolistic competition with factor endowments theory; the implications of transport costs, including home-market effects and the possibility of agglomeration in models of economic geography; and the positive and normative consequences of oligopolistic trade.

Keywords: Economic geography; imperfect competition; intra-industry trade; monopolistic competition; oligopoly and trade; product differentiation; F12

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-9442.2009.01562.x

Publication date: 2009-06-01