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Paul Krugman was awarded the 2008 Nobel Prize in Economics for his work on new trade theory. He analyzed how economies of scale impact international trade patterns and location of economic activity. Krugman integrated economies of scale into explicit general equilibrium models, deepening the understanding of trade determinants. His work shows how trade costs and input-output linkages between firms can lead to clustering of industries and uneven development across regions, even for similar countries. Globali

Author

Naoki Izumi

Language

EN