See the scientific background here. And I quote:
"It was Paul Krugman who most clearly and forcefully articulated the revolutionary nature of this new approach for the theory of international trade. His short paper in the Journal of International Economics, entitled 'Increasing Returns, Monopolistic Competition and International Trade' (1979a), is twofold. It contains not only a new trade theory that allows us to explain observed patterns of intra-industry trade, but also the seeds of a new economic geography where the location of production factors and economic activity can be stringently analyzed within the framework of a general-equilibrium model. Remarkably, the paper achieves all of this in only ten pages, and in a very simple and transparent fashion." [emphasis mine]
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