The Spatial Economy : High-Tech Glossary or New Regional Economics?

"The Spatial Economy Cities, Regions and International Trade", by Masahisa Fujita, Paul Krugman and Anthony J. Venables, has been seen as the best synthesis of the so-called new economic geography. The purpose of this paper is twofold: first, to review the book; and second, to place it in the current debate on regional economics. The first part of the paper is a brief introduction that situates the book in the history of regional economics. In the second part, a description and analysis of the basic models, their variations and applications are presented. The debate on regional economics concerning the theory proposed in the book is in the third part. Two aspects are stressed: the criticisms on the core-periphery model and how it incorporates regional diversity The fourth topic is a critical assessment of the achievements and originality of the new economic geography analysis