Rural (periphery) and urban (core) inequalities in China. http://www.youtube.com/watch?v=ui-vg6Zln5o
Peace and best wishes. Xi On Dec 13, 12:48 pm, "[email protected]" <[email protected]> wrote: > My comment: We all have to praise and apreciate his contribution to > unveil the current trends and risks of current models and the light > that he tries to put at the end of the tunnel, not a solution but a > way to find a way out to geographical and human inequalities. > > Here is his interiew (5 mins) and his lecture (44 mins.) > > http://nobelprize.org/nobel_prizes/economics/laureates/2008/krugman-l... > > Peace and best wishes. > > Xi > > Press Release > 13 October 2008 > > International Trade and Economic Geography > > Patterns of trade and location have always been key issues in the > economic debate. What are the effects of free trade and globalization? > What are the driving forces behind worldwide urbanization? Paul > Krugman has formulated a new theory to answer these questions. He has > thereby integrated the previously disparate research fields of > international trade and economic geography. > > Krugman's approach is based on the premise that many goods and > services can be produced more cheaply in long series, a concept > generally known as economies of scale. Meanwhile, consumers demand a > varied supply of goods. As a result, small-scale production for a > local market is replaced by large-scale production for the world > market, where firms with similar products compete with one another. > > Traditional trade theory assumes that countries are different and > explains why some countries export agricultural products whereas > others export industrial goods. The new theory clarifies why worldwide > trade is in fact dominated by countries which not only have similar > conditions, but also trade in similar products – for instance, a > country such as Sweden that both exports and imports cars. This kind > of trade enables specialization and large-scale production, which > result in lower prices and a greater diversity of commodities. > > Economies of scale combined with reduced transport costs also help to > explain why an increasingly larger share of the world population lives > in cities and why similar economic activities are concentrated in the > same locations. Lower transport costs can trigger a self-reinforcing > process whereby a growing metropolitan population gives rise to > increased large-scale production, higher real wages and a more > diversified supply of goods. This, in turn, stimulates further > migration to cities. Krugman's theories have shown that the outcome of > these processes can well be that regions become divided into a high- > technology urbanized core and a less developed "periphery". > > Brief information > Modelling Trade in a World of Plenty > > In a remarkably succinct, ten-page article published in 1979, Paul > Krugman proposed a new trade model that changed the way economists > view the international exchange of goods. At the heart of the model > lay two concepts that reflected the general twentieth century trend > towards having more: the increased production of goods, leading to > economies of scale, and increased diversity of products, leading to > greater choice for consumers. Krugman's model better reflected the new > pattern of international trade that had developed in a world where > less certainly wasn't more. > > His model sought to explain the situation in which countries that are > similar benefit by producing and trading in similar goods. Thus, cars > are manufactured in France, Germany and Italy, with each country > benefiting from the economies of scale delivered by mass production, > and the citizens of each country benefiting from the increased choice > that arises from having a global motor industry. Previous trade models > had emphasized the importance of the differences between countries, > with international trade being based on the production of different > materials in each country to fulfil unmet needs in others. Krugman's > development of a rigorous framework for describing the real world > situation formed the basis for an explosion of subsequent analysis. > > The 1979 paper in the Journal of International Economics also sowed > the seeds of an analysis of the forces driving increased urbanization. > In his core-periphery model, which he developed properly in a 1991 > publication, Krugman describes the opposing pressures that act on > populations: those that serve to pull them into the core (urban) > centres and those that work to push them out into the peripheral > (agricultural) areas. For example, one such factor is the cost of > transport, and the generally decreasing transport costs seen in the > twentieth century have served to pull production, and populations, > into urban centres. Once again, Krugman's formulation of a robust > model provided the apparatus that allowed a thorough exploration of > the factors driving the global distribution of production facilities, > and of the urbanization that is such a prevalent feature of the modern > world. > By Adam Smith, Editor-in-Chief, Nobelprize.org > > First published 20 October 2008 > > Information for the > Publichttp://nobelprize.org/nobel_prizes/economics/laureates/2008/info.html --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
