Putting the 'New' into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics

46 Pages Posted: 7 Apr 2009  

J. Peter Neary

University of Oxford - Department of Economics; Centre for Economic Policy Research (CEPR)

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Date Written: March 2009

Abstract

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.

Keywords: economic geography, imperfect competition, intra-industry trade, monopolistic competition, oligopoly and trade, product differentiation

JEL Classification: F12

Suggested Citation

Neary, J. Peter, Putting the 'New' into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics (March 2009). CEPR Discussion Paper No. DP7231. Available at SSRN: https://ssrn.com/abstract=1372551

J. Peter Neary (Contact Author)

University of Oxford - Department of Economics ( email )

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