Development Geography and Economic Theory

Author: Paul Krugman Cai Rong
Publisher:
Publish Date: 2000-12-01
Features: As a branch of economic science, international economics primarily studies various economic behaviors and conditions under different distribution conditions. It examines not only micro-level behaviors such as factor mobility but also macro-level issues like exchange rates, balance of payments, price stability, and economic growth. For most open economies, international economics is a more realistic and significant field of study. Given the differences in specific research objects, international economics is divided into two parts: international trade and international finance. In recent decades, with the continuous development of the global economy, new phenomena and issues have emerged, driving rapid advancements in research within these two fields.
In the field of international trade, the growth of intra-industry trade and trade between developed countries has significantly altered traditional perceptions of international trade. The emergence of the "new trade theory," which incorporates concepts like imperfect competition and economies of scale, has been a response to these changes. The constant emergence of new trade patterns has prompted further research into the technological, geographical, and historical factors that determine the basis of trade. In terms of policy, corresponding developments include "strategic trade policies" and "political economy" studies on the income distribution of interest groups. Additionally, research on multinational corporations and regional economic integration has gradually become an important theoretical component.
In the field of international finance, the integration of international capital markets, the establishment of the European Monetary System, the opening of developing countries, and the transition from planned economies have triggered a series of financial crises. How to prevent financial risks in an open economy, reduce external shocks, and maintain macroeconomic stability have become key topics in policy-making and international financial research. To better understand the theory and application of international economics, we have compiled this series of translated works on international economics. Unlike standard textbooks on international economics, this series focuses on the forefront of international economic development, the analysis of real-world issues, and empirical research in international economic relations. For those engaged in theoretical work, this series will help clarify the application of fundamental principles in international economics. For practitioners, the series will assist in mastering the theories of international economics through more accessible language and concrete analysis.
At the dawn of the 21st century, as China prepares to join the World Trade Organization, we dedicate this series to Chinese economic workers who are preparing to face the challenges of the international economy. The series emphasizes the forefront of international economic development, the analysis of real-world issues, and empirical research in international economic relations. This book constructs insightful models, filling the gap in standard economic theory where there is a lack of attention to economic geography.