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The Increasing Returns Revolution in Trade and Geography
The American Economic Review
Thirty years have passed since a small group of theorists began applying concepts and tools from industrial organization to the analysis of international trade. The new models of trade that emerged from that work didn't supplant traditional trade theory so much as supplement it, creating an integrated view that made sense of aspects of world trade that had previously posed major puzzles. The "new trade theory" -an unfortunate phrase, now quite often referred to as "the old new trade theory"doi:10.1257/aer.99.3.561 fatcat:xknvdfqtvbcvvpr4f4vs7dnrgi