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Putting the “New” into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics
Author(s) -
Neary J. Peter
Publication year - 2009
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2009.01562.x
Subject(s) - monopolistic competition , economics , new trade theory , neoclassical economics , economies of agglomeration , economies of scale , returns to scale , competition (biology) , normative , trade theory , oligopoly , receipt , trade barrier , monopoly , international trade , microeconomics , welfare , production (economics) , market economy , law , ecology , political science , biology , accounting
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.