Congratulations to Paul Krugman the Nobel Laureates 2008 in Economics. His theory about international trade and economic geography has led to award and appreciation. I had wrote similar topic on my unpublished undergraduate thesis several years ago which entitled, "Indonesian Export Non-Oil and Gas Analysis: Panel Data Gravity Model Approach, 2000 - 2004". 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-sca...
Just what i have learned from competition law and policy, and broader perspective of competitive economy ... Enjoy!