Abstract
It is argued in this paper that there are significant differences between interregional and international trade, mainly because of the existence of increasing returns at a regional level, next to comparative advantages. Consequently, location matters, although interregional trade seems to be lagging GDP growth, most likely as a result of a structurally declining regional specialisation.
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Krugman, P. (2015). Interregional and International Trade: Different Causes, Different Trends?. In: Nijkamp, P., Rose, A., Kourtit, K. (eds) Regional Science Matters. Springer, Cham. https://doi.org/10.1007/978-3-319-07305-7_3
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DOI: https://doi.org/10.1007/978-3-319-07305-7_3
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