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New Economic Geography After Thirty Years

  • Steven BrakmanEmail author
  • Harry Garretsen
  • Charles van Marrewijk
Living reference work entry

Abstract

In this chapter we briefly discuss how the New Economic Geography literature follows from and builds on international trade theory. We then turn to the main empirical implications of New Economic Geography. We highlight that the main problem with empirical applications of New Economic Geography is that a single test of the implications of the model is illusive because of the structure of the model. As a result, the main consequences of the model are usually tested separately. Some of the implications of the model are also consistent with other models, notably models in urban economics. We stress therefore, that despite an initial surge in empirical research inspired by New Economic Geography as well as improved methods, the empirical evidence still remains rather sketchy. Moreover, up to now policy advise based on New Economic Geography is mostly qualitative.

Keywords

Transport cost Large market Nominal wage Home market effect Shock sensitivity New economic geography 

JEL Classification

F1 R1 

Notes

Acknowledgements

This chapter is partially based on earlier work by the authors (corresponding Author: Charles van Marrewijk). We do not give detailed references to our own work but readers interested in further details can consult our book on urban and geographical economics (Brakman et al. 2019) for more extensive and detailed discussions and references, see in particular chapters 7, 8, and 9.

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Further Reading

  1. Baldwin R, Forslid R, Martin P, Ottaviano GIP, Robert-Nicoud F (2003) Economic geography and public policy. Princeton University Press, PrincetonGoogle Scholar
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  6. Neary JP (2001) Of hype and hyperbolas: introducing the new economic geography. J Econ Lit 39(2):536–561CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Steven Brakman
    • 1
    Email author
  • Harry Garretsen
    • 1
  • Charles van Marrewijk
    • 2
  1. 1.Faculty of Economics and BusinessUniversity of GroningenGroningenThe Netherlands
  2. 2.Utrecht University School of EconomicsUtrechtThe Netherlands

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