Beside the concept of the komparativen advantage of David Ricardo the new economic Geografie integrates also concepts for the explanation of foreign trade between regions their relative equipments with factors of production does not differ, in particular increasing scale yields by positive internal scale effects and by positive external scale effects. The basis of the new economic Geografie is the hypothesis that a reduction of the transport costs can change the spatial distribution sample of the economic activity. It becomes clear that enterprises and workers establish themselves in a large market, in addition, that large markets develop, where enterprises and workers establish themselves.

The new economic Geografie encounters in the scientific public large interest, since politico-economic implications handing far result from their prognoses. The new economic Geografie a clearly more differentiated picture confronts wide-spread opinion that a reduction is favourable all regions involved by foreign trade barriers for, to the time long among economists, since she formally founds the possibility of a long-term divergence of regional incomes and the emergence of dyes. Thus the new economic Geografie can be consulted for founding national interventions and assigned to the Keynesianismus.

Literature

• R.E. Baldwin, R. Forslid, P. Martin, P., G. Ith Ottaviano, F. Robert Nicoud: Economic Geography and Public Policy. Princeton, Oxford 2003
• M. Fujita, P.R. Krugman, A.J. Venables: The Spatial Economy - Cities, region, and internationally trade. Cambridge 1999
• P.R. Krugman: Geography and trade. Leuven, Cambridge, London 1991
• P.R. Krugman: Development, Geography, and Economic Theory. Cambridge, London 1995

Articles in category "New economic Geografie"

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