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International Trade and Agglomeration: An Alternative Framework

In: International Trade Theory and Competitive Models Features, Values, and Criticisms

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  • Ronald W. Jones
  • Henryk Kierzkowski

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.

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  • Ronald W. Jones & Henryk Kierzkowski, 2018. "International Trade and Agglomeration: An Alternative Framework," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 16, pages 263-279, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813200678_0016
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    Keywords

    International Trade Theory; Models; Competitive Markets;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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