International Trade and Agglomeration: An Alternative Framework

Ronald Jones and Henryk Kierzkowski

Chapter 16 in International Trade Theory and Competitive Models:Features, Values, and Criticisms, 2018, pp 263-279 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The New Economic Geography, as expounded by Krugman and others, highlights the importance of greater extent of agglomeration as incomes grow in the world economy. In this chapter, we suggest an alternative framework in which, as incomes grow, greater degrees of economic fragmentation, and disagglomeration are encouraged. In both approaches increasing returns to scale are crucial, but in ours these are found in service sectors that allow separate production blocks to be coordinated instead of being found within separate production blocks.

Keywords: International Trade Theory; Models; Competitive Markets (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Date: 2018
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Journal Article: International trade and agglomeration: An alternative framework (2005)
Journal Article: International trade and agglomeration: An alternative framework (2005)
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