The New Economic Geography

Abstract

The achievement of the New Economic Geography is that a way for formal declaration as a result of agglomeration economies of scale, transportation and mobile workforce is offered. Basic effects are always determined by centrifugal and centripetal forces. A finding of the basic model is that transport costs can be crucial for the emergence of a center-periphery model. Likewise, historical developments influence the distribution of industries between regions significantly and enduring. This paper gives a brief introduction to the topic. The core-periphery model of Krugman (1991) is formally derived.Neue Ökonomische Geographie