The Spatial Economy: Cities, Regions, and International Trade

by Masahisa Fujita, Paul Krugman, Anthony J. Venables

The authors show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. Since 1990 there has been a renaissance of theoretical and empirical work on the spatial aspects of the economy—that is, where economic activity occurs and why. Using new tools—in particular, modeling techniques developed to analyze industrial organization, international trade, and economic growth—this "new economic geography" has emerged as one of the most exciting areas of contemporary economics. The authors show how seemingly disparate models reflect a few basic themes, and in so doing they develop a common "grammar" for discussing a variety of issues. They show how a common approach that emphasizes the three-way interaction among increasing returns, transportation costs, and the movement of productive factors can be applied to a wide range of issues in urban, regional, and international economics. This book is the first to provide a sound and unified explanation of the existence of large economic agglomerations at various spatial scales.

Genres: Economics, Nonfiction, Geography, Cities

384 pages, Paperback

First published July 2, 1999

About the author

Masahisa Fujita is a Professor at Konan University, an Adjunct Professor at the Institute of Economic Research, Kyoto University, and the former President and Chief Research Officer at the Research Institute of Economy, Trade and Industry. His research expertise covers urban economics, regional economics, and spatial economics. He is recognized as one of the pioneers of the study of new economic geography. Prior to his current positions, he was formerly an Assistant Professor at the Department of Transportational Engineering, Kyoto University (1973-1976); an Assistant Professor, Associate Professor, and Professor at the Department of Regional Science and Department of Economics, University of Pennsylvania (1976-1994); a Professor at the Institute of Economic Research, Kyoto University (1995-2007); and President of the Institute of Developing Economies, Japan External Trade Organization (JETRO) (2003-2007). He earned his Ph.D. in Regional Science from the University of Pennsylvania in 1972. He is a member of the Japan Academy, Japanese Economic Association, Applied Regional Science Conference, Japan Regional Science, Regional Science Association International, and American Economic Association. His publications include Economics of Agglomeration: Cities, Industrial Location, and Regional Growth, Cambridge University Press, 2013 (with J.-F. Thisse); The Spatial Economy: Cities, Regions, and International Trade , MIT Press, 1999 (with P. Krugman and A. J. Venables); and Urban Economic Theory, Cambridge University Press, 1989.

Reviews

[Andreas Selvig · Rating 4 out of 5]

Another entry on the list of books I wish I'd read in uni. Very dense and technical but a super interesting read. Some of these chapters could have made great additions to a urban economics or international trade course. I still adore the ability of theoretical economics to glean insights and make sense of the world from *fairly* simple models, and would have loved to spend more time with this and the follow-on works it has no doubt inspired.

[Lucy Faria · Rating 3 out of 5]

Interesting but dense and very technical. Would recommend a wider background into urban econ before reading. Took me SO long to drone through each chapter.

[Piotr Smolnicki · Rating 3 out of 5]

I began reading this book in 2017, taking it when moving, and always putting it on top of the shelf - it is a significant instruction of spatial theoretical modeling for... anybody who understands it.