Geography and Trade

Author: Paul Krugman, USA
Publisher:
Publish Date: 2002-06-01
Features: I should have titled this book "Location and Trade." However, I was concerned that this title might be too narrow for the points I wanted to convey. Although traditional location theory is broad and deep, what is usually taught to students consists of only a few limited geometric techniques, such as triangles and hexagons. What I study is not geometry but some fascinating problems that arise when firms must make interdependent spatial decisions. Using the term "location" to define this field might be somewhat narrow. However, location theory is part of the broader field of economic geography. Therefore, I chose the term "geography" to describe the issues I will discuss. Geographers might not be entirely happy with what they see—those highly formalized models that are very attractive to economists would be rejected as not belonging to their field. Anyway, I like the word, so I adopted it. The topic of economic geography itself is very important; it provides much inspiration for international economists and serves as an invaluable laboratory for understanding the discipline of economics. This topic is also very interesting. When delivering this lecture, I hope the readers of this book will also find it enjoyable.