The aim of the study is to compare the methodology of spatial model building of two very influential economists, Thünen and Krugman. Thünen is a representative nineteen century economist and Krugman represents the method of contemporary neoclassical mainstream economics. Thünen is mostly...

Present paper studies the within-country regional effects of trade liberalization in transition countries. We argue that FDI inflows can be an important factor to accelerate the regional adjustment process in the home country. In order to underpin this theoretically, we first augment the new...