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2014 | OriginalPaper | Chapter

30. New Economic Geography: Endogenizing Location in an International Trade Model

Authors : Prof. Steven Brakman, Dr. Harry Garretsen, Prof. Charles van Marrewijk

Published in: Handbook of Regional Science

Publisher: Springer Berlin Heidelberg

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Abstract

In this chapter we first briefly discuss how the new economic geography literature (NEG) follows from and builds on international trade theory. We then turn to the main empirical implications of NEG. We highlight that the main problem with empirical applications of NEG is that a single test of the implications of the model combined is illusive because of the structure of the model. As a result the main consequences of the model are usually tested separately. And some of the implications of the model are also consistent with other models. We stress, therefore, that despite a real surge in empirical NEG inspired research, the empirical evidence is still rather sketchy and also that so far NEG-based policy advice is still mostly qualitative.

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previous chapter New Economic Geography: Past and Future
next chapter Evolutionary Economic Geography and Relational Geography
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Metadata
Title
New Economic Geography: Endogenizing Location in an International Trade Model
Authors
Prof. Steven Brakman
Dr. Harry Garretsen
Prof. Charles van Marrewijk
Copyright Year
2014
Publisher
Springer Berlin Heidelberg
Book
Handbook of Regional Science

Print ISBN: 978-3-642-23429-3

Electronic ISBN: 978-3-642-23430-9

Copyright Year: 2014

DOI
https://doi.org/10.1007/978-3-642-23430-9_39