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Economic geography and trade

Kerem Coşar

Chapter 8 in Elgar Encyclopedia of International Trade, 2026, pp 34-38 from Edward Elgar Publishing

Abstract: This entry provides a comprehensive overview of economic geography and its intersection with international trade theory. First, I examine the fundamental concepts that govern the spatial distribution of economic activity, including the distinction between first-nature and second-nature geography, and analyze the mechanisms underlying agglomeration and dispersion forces. Second, I trace the intellectual development of the field from early contributions through the New Economic Geography framework to more recent applications. Third, I review recent empirical evidence on how trade liberalization reshapes countries’ internal economic geography, drawing on experiences from Mexico and China. I conclude by discussing how transportation infrastructure investments and migration policies interact with trade openness to determine spatial equilibrium outcomes and regional specialization patterns.

Keywords: International trade; Economic geography (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035327492
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