Working Paper: CEPR ID: DP7231
Authors: J. Peter Neary
Abstract: This paper reviews the scientific contributions of Paul Krugman to the study of international trade, on the occasion of his receipt of the 2008 Nobel Memorial Prize in Economics. A simplified exposition is presented of some of his principal findings, including: the effects of trade on firm scale and product diversity in a general model of monopolistic competition; the integration of monopolistic competition with factor endowments theory; the implications of transport costs, including home-market effects and the possibility of agglomeration in models of economic geography; and the positive and normative consequences of oligopolistic trade.
Keywords: Economic Geography; Imperfect Competition; Intraindustry Trade; Monopolistic Competition; Oligopoly and Trade; Product Differentiation
JEL Codes: F12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| monopolistic competition (L12) | trade patterns (F10) |
| transport costs (L91) | trade volumes (F10) |
| transport costs (L91) | trade patterns (F10) |
| increasing returns to scale (O40) | intra-industry trade (F14) |
| home-market effects (F61) | export volumes (F10) |
| oligopolistic trade (F12) | trade outcomes (F10) |