Abstract: American economist Paul Robin Krugman. Economist Paul Robin Krugman Paul Robin Krugman

Paul Krugman. Way up

Nikolai Melnikov

The Nobel Prize has been and remains the most prestigious and authoritative award in the world. It was established in 1900, according to the will of the famous Swedish chemist Alfred Bernhard Nobel, the creator of dynamite. The Nobel Prize is awarded annually in six categories: physics, chemistry, economics, physiology and medicine, literature, and the Peace Prize. Along with the amount of money, each laureate receives a gold medal with the profile of Alfred Nobel and a unique diploma. The presentation of high awards takes place on the day of the death of the founding father of the award, December 10th. Prizes in physics, chemistry, physiology and medicine, literature and economics are awarded in Stockholm, the Peace Prize in Oslo.

By tradition, the name of the Nobel Prize winner in economics is named last, when the winners in other categories are already known. This year was no exception: the name of the American Paul Robin Krugman from Princeton University, New Jersey, was made public only on October 13th. According to the official wording of the Nobel Committee, Krugman received the award "for his analysis of trading patterns and locations of economic activity."

Initially, Nobel's will did not mention an award in the field of economics. It was established in 1968 by the Bank of Sweden in memory of the famous chemist, giving the official name "Alfred Nobel Memorial Prize for Economics". This year monetary equivalent The premium is approximately one million four hundred thousand US dollars.

The choice of the Nobel Committee did not come as a surprise to anyone who follows the news in the field of economics at least a little. The name of Paul Krugman has been named among the most likely contenders for the Nobel Prize for five years, but he received it only this year. However, this does not mean that Krugman's work has so far been largely unnoticed by the public. Paul Krugman's first award was in 1991 the John Bates Clark Medal, given biennially to the most distinguished American economist under the age of 40. Four years later, Krugman became the owner of the most prestigious American Adam Smith Award, presented annually by the National Association for Business Economics in the United States, in 2000 he was noted in Germany by presenting a diploma of the Rektenwald Prize laureate. In 2004, it became known that the economist was awarded the Prince of Asturias Prize in the field of social sciences - the highest award in Spain, which is often called the Spanish Nobel Prize. In addition, the Munich Center recognized his merits. economic research, which included the name of an American in the list of its honorary members, and many other organizations specializing in the problems of the international economy.

The theory, awarded this year with a gold Nobel medal, was developed by Krugman back in the late 70s of the last century. It explains the impact of globalization and free trade on world economy and is based on the premise that the cost of producing many goods can be reduced with large volumes of production. This is the so-called economies of scale. Taking into account consumer demand for various types of goods, small-scale production for the local market is gradually being replaced by large-scale production for the global one. Under conditions of large-scale production, trade is expanding not only between countries specializing in various types of goods, as follows from traditional economic theory: according to Krugman's theory, states that are gradually becoming dominant in the market are not only at the same stage of economic development, but also specializing in exports and import of a particular product. Due to the competition of the economies of various states in the world market, this leads to a decrease in product prices.

Krugman's theory also explains the reasons for the urbanization of the world economy. Large-scale production, on the one hand, and the struggle to reduce transport costs, on the other, lead to the fact that an increasing part of the population gravitates towards megacities. The growing population of cities, in turn, stimulates the development of the economy and the growth of production, which, closing the circle, lead to a further increase in the number of inhabitants. As a result, the regions are gradually divided into high-tech "core zones" and less developed "periphery".

Paul Robin Krugman was born on February 28, 1953 in Long Island, New York to a Jewish family. From early childhood, the boy, largely thanks to the popular science works of the famous science fiction writer Isaac Asimov, became interested in history and economics. Parents, David and Anita Krugman, supported their son in every possible way in his hobbies. After graduating from school, Paul entered the Faculty of Economics at Yale University, from which he left in 1974 with a bachelor's degree. In 1977, Krugman also received a Ph.D. from the Massachusetts Institute of Technology, Boston, another of the most prestigious educational institutions countries.

After graduating from the Massachusetts Institute of Technology, Krugman remained in Boston, but now as a teacher. Then there were Yale, Stanford, the University of California and the London School of Economics. Today Paul Krugman is a professor at Princeton University. He successfully combines teaching with work in the Group of Thirty (G30), an international organization that brings together financiers and economists from different countries with the aim of in-depth study of financial and economic problems. The tasks of the G30 also include an analysis of the impact of decisions taken in this area on the public and private spheres. In addition, the Nobel laureate closely cooperates with many of the world's leading economic publications - his articles on current issues of international economic policy regularly appear on the pages of specialized periodicals.

Since 2000, already having considerable experience in literary work behind him - by this time he managed to publish more than one scientific work and a couple of dozen articles on economic issues, Krugman began to collaborate with The New York Times. He undertook to write an analytical column in which he quite popularly expresses his views on the economic situation in the country and often allows himself to be sharply critical of the actions of the administration of President George W. Bush. Evil tongues even claim that it is no coincidence that the name of Paul Krugman this year, on the eve of the presidential elections in the United States, was included in the lists Nobel laureates thus again raising the question of the partiality and politicization of the Nobel Committee. In 2002, the editorial board of the professional monthly publication "Editor & Publisher" recognized Paul Krugman as the best in the field of journalism, presenting him with their "Columnist of the Year" award.

Krugman devoted his first column after the Nobel Prize to the topic of global financial crisis in light of the upcoming presidential elections. In his opinion, governments are doing the right thing by providing financial support to banks and nationalizing the financial institutions most affected by the crisis. Moreover, these measures should be carried out regardless of the state budget. However, the economist believes that this is not all that the state can do in the current difficult situation: the non-financial sector of the economy also needs help.

By the way, some time ago, a renowned economist suggested that the world economy was in for a rather long recession, which is one of the phases business cycle, - however, in the same statement, he made a reservation that there is no reason to expect a complete collapse of the world economy. How right the Nobel laureate will be, time will tell, although the first part of his “prophecy” has already begun to come true.

In his Nobel speech, which each laureate traditionally delivers from the podium of the Concert Hall in Stockholm, Paul Krugman assured that the award of such a prestigious award to him could certainly change his life for several weeks, but in the end it would return to its previous course. After all, now is not the time for him to rest on his laurels - there is still a lot of work ahead that needs to be done. It remains only to wish good luck.

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Paul Krugman

Paul Robin Krugman was born February 28, 1953 in Long Island, New York. American economist and publicist, winner of the Nobel Prize in Economics (2008). Paul Krugman, whose number of articles in leading scientific journals can be counted on the fingers; all his serious publications fall on the period of the 1970s to the early 1990s, i.e. approximately from the time of graduation from graduate school until the age of forty. Krugman received his Nobel Prize for achievements in two related topics - the theory of international trade and the theory of the geographical location of economic activity. These two theories are discussed sequentially in this paper.

The exact wording of his Nobel Prize was: "for his analysis of trade patterns and location of economic activity", or "For the analysis of the structure of trade and the location of economic activity."

The main problems that the economist raises in his articles, as well as those main problems for the study of which he was given the Nobel Prize: Krugman Nobel economist

First of all, it is economic geography, as well as the effect of returns to scale.

Secondly, his critique of the current economic situation in both the US and Europe, in matters relating to: unemployment, external public debt, aggregate demand and developing countries.

Krugman's main work was to create a "new international economy". The main prerequisite for the creation of this model was the problem of similar-similar goods. The essence of the trade in like-like goods was that before the Second World War, the main trading partners were dissimilar countries that traded unlike-dislike goods. For example, if a country did not have the capacity to produce wine, it would buy that wine from other countries, trading in goods that it could produce but others could not. This trading model is fully explained by Ricardo's theory of comparative advantage, later expanded by Heckscher and Ohlin. However, over time, there has been a trend towards intra-industry trading. For example, cars of different brands. And this model was considered by Krugman in his theory, trade in similar-similar goods, since the theory of comparative advantages could not explain such trade.

What is the "new international trade"? First, this positive theories international trade, taking into account domestic economies of scale and the factor of monopolistic competition, integrating them into the structure of general equilibrium models. Although it can hardly be argued that the consideration of economies of scale is something new in the theory of international trade: its real novelty lies in the simultaneous inclusion of economies of scale and monopolistic competition in the formal framework of general equilibrium analysis.

The number of firms is fixed, that is, new firms cannot enter the market being attracted by high profits. The model is formulated in such a way that the only factor that matters for national welfare both countries is the profit of both firms, minus subsidies or taxes. In both states wage and (at the first stage of the analysis) profit before tax are fixed. The goal of national policy is to redistribute profits from the foreign firm to the domestic firm, although there may be a parallel redistribution of income from the country's taxpayers to the owners of domestic firms. The size of the market for combined production is fixed; consumers compete with each other. The government of the "third" country is kept from interfering. The higher the output of one firm, the lower the profits of the other.

Krugman also considered the traditional argument for protectionism, which is built on the concept of terms of trade and which can be interpreted as evidence in support of an export tax. The economist believed that the introduction of a tariff could lead not only to the substitution of imports by domestic production, but also to the stimulation of exports.

Two firms compete for different markets(including - on the domestic), playing "according to Cournot" and faced with economies of scale. The national government protects the firm of its state in the domestic market. Such protection can be interpreted as a kind of subsidizing. Naturally, this redistributes profits from the foreign firm to the domestic firm. The domestic firm's marginal cost falls, while the foreign firm cuts production and its marginal cost rises. As a result, the domestic firm expands its exports. Thus, P. Krugman shows that import protection acts as a tool to promote the development of exports.

In 1990, Krugman made formulated a three-period model. Its essence was that: in the first period, entrepreneurs "invest" valuable resources in innovations that reduce costs. Those who are successful in this receive a temporary monopoly on their new technology in the second period; they have a rent due to the cost advantage over the producer who still uses the old technology. In the third period, this innovation becomes common property, and the source of rental income disappears. Such out-of-phase sequences can be "brought together", which in turn gives a picture of a continuous process.

Krugman's second most important discovery is his geographic concentration model. In his Nobel lecture, the economist explains it this way:

“We assume that the manufacturer has established sales of S, S* units in two markets, with S > S*. And it must pay the shipping costs f for each unit shipped from one location to another. The manufacturer has the choice of having either one or two plants; by opening a second plant, the manufacturer can eliminate transportation costs, but must pay additional fixed costs F.

Clearly, if the manufacturer opens only one plant, it will be in a larger market.

But will it concentrate production? Only if F> fS*.

It goes without saying that this little display ignores market structure, prices, elasticity of demand, and more. But we know we can put it back in, as Dixit-Stiglitz does quite well, and the hoax version conveys an essential intuition: if the economies of scale, as noted by F/S*, are large enough compared to transportation costs, production will be geographically concentrated, and that concentration, other things being equal, will be in the larger market.

Hence the obvious, short step (which for some reason took me a decade) to the geographic factor concentration model. Think now of a world in which there are many businesses making the same kind of choices I just described, and also where some but not all resources are mobile. Let S be the size of the overall market, m be the "free" production share of that market, and assume there are two symmetrical locations. Then we can think of a possible equilibrium in which all free factors are concentrated in one place. In this case, another location - a smaller market - would require S(1 - m)/2 units of our representative item.

And this concentration of production would be self-sustaining if F> fS (1 - m)/2, or F/S> f (1 - m)/2. Thus, this is our criterion for creating a self-sustaining concentration of production in space.”

Krugman also lists two conditions for the model to work correctly:

1. Self-sustaining concentration of production in space can occur if economies of scale (F/S) are large, transportation costs are low, and sufficient production is mobile.

2. Which location the concentration of production will take is arbitrary, and may be presumably a function of initial conditions or historical chance.

Krugman's activities do not end with the analysis of international trade. The Nobel laureate is considered the world's leading economist, and also contributes his comments to the current order of things in the economy. Krugman presents a large number of articles in which he speaks about existing economic problems and ways to solve them. The main place in his statements is occupied by criticism of the actions of the authorities of both the United States and Europe. The economist thinks that the problem modern economy- is not state debt, a aggregate demand and unemployment. Here's what Krugman says about it: “The real problem for developed countries is insufficient spending. And at a certain level, the solution to this problem does not look like something very complicated. After all, it is not only simple, but also pleasant - to spend more. But the problem is that the increase in spending should start with the state. But this, unfortunately, is not happening - for political reasons. America is now in political stalemate and intellectual turmoil. Many people care about the budget deficit, and somehow it turns out that unemployment does not bother them.”

With regard to the Belarusian economy: according to Krugman, in order to stay afloat, it is desirable for Belarus to avoid large debts. It is also encouraging to join the single economic space with Russia, Ukraine and Kazakhstan, free trade.

Krugman's policy on the problem of getting out of the crisis is to stimulate demand. The economist believes that neither government debt nor high inflation kills the economy the way a decline in demand does. “The cost of one is the profit of the other,” says Paul Krugman. The Belarusian economy is well adapted to such conditions of overcoming the crisis. State policy on this moment is aimed at improving the quality of life of citizens: wages rise, markets and labor supply increase. There is a reduction in unemployment.

Speaking of the model of new international trade, it is possible only in the case of large economies of scale, that is, in relation to big business with a large market.

Simply put, his models were designed more for large developed countries than for emerging countries. In addition, the international trade of Belarus is reduced more to trade in dissimilar, dissimilar goods. Therefore, we can say that his ideas are very relevant at the present time for countries with a large sales market, a large volume of goods, as well as with predominantly similar-similar international trade.

To implement his ideas in practice, the Belarusian foreign trade, it is necessary to significantly change the structure of trade, i.e. make it more like European and American trade like-like goods. However, Belarus is not yet ready for such a policy and is unlikely to be ready in the future. For such a step, Belarus needs a large resource base and high-tech production.

List of sources used

Revolution of increasing returns in trade and geography. Nobel lecture, December 8, 2008. Access mode: http://n-mir.org/index.php?option=com_content&task=view&id=635&Itemid=31. Access date: 11/25/2012.

American economist Paul Krugman. Access mode: http://www.kazedu.kz/referat/95814. Access date: 11/25/2012

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Scientific achievements

His scientific works indirectly concern not only economics, but also political structure. So, at one time he wrote works on trade policy and market structure, as well as on spatial economics. Such a wide expansion of his scientific views caused a multiple response in the circles of various scientific communities, and not only economic, but also humanitarian ones. He publishes and creates study guides which are in great demand among students of many universities around the world.

Scientific works

"Strategic Trade Policy and the New International Economic Theory" ( Strategic Trade Policy and the New International Economics, 1986);

Krugman P. R., Obstfeld M. International Economics: Theory and Policy. - 1988;

"Trade policy and market structure" ( Trade Policy and Market Structure, 1989);

"Spatial Economics: Cities, Regions and International Trade" ( The Spatial Economy: Cities, Regions and International Trade, 1999, with M. Fujita and E. Venables).

Krugman P.R., Wells R. economics. - Worth Publishers, 2005.

The Great Unraveling: Losing Our Way in the New Century. - W.W. Norton & Co., 2003. - 320 p. - Russian translation: The Great Lie. - M.: AST; St. Petersburg: Midgard, 2004. - 480 p.

The Conscience of a Liberal. - W.W. Norton & Co., 2007. - 352 p. - Russian translation: Liberal Creed. - M.: Europe, 2009. - 368 p.

The Return of Depression Economics and the Crisis of 2008. - W. W. Norton, 2008. - 224 p. - Russian translation: The return of the Great Depression? - M.: Eksmo, 2009. - 336 p.

Introduction

PAUL ROBIN KRUGMAN

Literature

Introduction

The paper describes the approach of the American economist, Nobel Prize winner in economics in 2008, awarded by the American Economic Association with the J. B. Clark medal, Honorary member of the Munich Center for Economic Research Paul Robin Krugman, to the solution of pressing issues of international trade and his innovative developments, which appear in science under called the "new international economy". It was for the analysis of trading patterns and the determination of the place of economic activity that he was awarded the Nobel Prize in Economics in 2008.

Paul Robin Krugman

P. Krugman was born on February 28, 1953 in New York (USA). He studied at Yale University, where he received a bachelor's degree in 1970. In 1977, at the Massachusetts Institute of Technology, he defended his dissertation for the degree of Doctor of Philosophy. At the same institute, he began teaching, which he then continued at Yale, California and Stanford Universities, as well as at the London School of Economics. Since 2000 he has been a professor at Princeton University.

P. Krugman is a well-known expert on world economic policy. His scientific research covers various aspects of international financial and economic activity. Unlike such prominent Nobelists as B. Ulin and J. Mead, who are the founders of the neoclassical doctrine of international trade, P. Krugman studies the features modern stage in the development of the world economy. After all, when forming an adequate international trade and economic policy, it is necessary to take into account and use the objective patterns of changes (including institutional changes associated with globalization). His analysis of these patterns and elucidation of the underlying causes of the paradoxes of globalization are based on clear scientific positions.

Transformations in the nature and driving forces of the world economic process have directly affected trade, one of the important activities that improves our lives. P. Krugman remarked: “You could say, and I say exactly that, that globalization, driven not by the goodness of human nature, but by the motive for making a profit, has brought people much more than all the assistance to other states and all the loans provided on soft terms, ever made by governments and international organizations well-meaning." And wistfully adds: "But I know from experience that, having said this, I will certainly receive a wave of messages filled with hatred." Such is the nature of globalization. The term has come to mean an increase in the international flow of goods and services. World increasingly interdependent in an economic sense, as evidenced by the fact that the share of world exports in world GDP increased from 8% in 1950 to 26% in 1999. At the same time, the share of exports in US GDP increased from 5% to 10%.

P. Krugman is an excellent publicist (since 2000 he has been writing an analytical column in the New York Times newspaper), so he elegantly summarized the worries about globalization using an old French proverb: "Anyone who has not been a socialist before the age of 30 is heartless; everyone who who remains a socialist after he is 30 is unreasonable." The scientist writes: “If you buy a product made in any of the third world countries, then remember: this product is made by workers who are paid incredibly little by Western standards and who probably work in terrible conditions. Any person who these circumstances are unfazed (at least occasionally), heartless.But it does not follow that the demonstrators are right.On the contrary, any person who thinks that the answer to global poverty is a simple rancor against world trade, has no head or wishes not to use it The anti-globalization movement already has a remarkable history of hurting the very people and ideas it claims to defend." Professor P. Krugman states that per capita trade volumes with low-income countries are no longer so small that they do not affect inequality.

The modern world market is quite open to circumstances in which large, low-income countries are more likely to benefit from trade than small, low-income countries. If, for example, there is an expansion of trade in goods whose production attracts reverse flows that increase with scale, then major countries should have an advantage because their large domestic markets facilitate the realization of economies of scale. The young scientist drew attention to the increase in returns based on economies of scale as a source of comparative advantage back in 1980 and continued to develop this topic in his study in 1995.

P. Krugman owns some recent developments in the field of the theory of foreign trade policy related to taking into account the factors of imperfect competition, strategic interactions due to the oligopolistic structure of markets, as well as economies of scale. All these developments have received the general name "new international economy". According to experts, they represent a qualitative breakthrough in the study of foreign trade issues. To what extent are these developments really new, and how do they compare with traditional theory?

There are two strands of innovative developments that appear under the name "new international economy". First, these are positive theories of international trade that take into account domestic economies of scale and the factor of monopolistic competition, integrating them into the structure of general equilibrium models. Although it can hardly be argued that the consideration of economies of scale is something new in the theory of international trade: its real novelty lies in the simultaneous inclusion of economies of scale and monopolistic competition in the formal framework of general equilibrium analysis. This circumstance led to the integration between the theory of international trade and the theory of industrial markets. The results of such integration are summarized by P. Krugman and E. Helpman in a joint monograph " Market structure and international trade" (1985). Second, there are theories that emphasize the oligopolistic structure of markets and strategic interactions between firms. According to these theories, government policies, such as the use of export subsidies and tariffs, can provide redistribution profits from foreign firms to their domestic competitors, thereby guaranteeing the state a net gain.On this issue, two comprehensive books by P. Krugman stand out - "Strategic Trade Policy and the New International Economic Theory" (1986) and "Trade Policy and Market Structure" ( 1989, with E. Helpman).

A really new contribution to trade policy theory is the consideration of oligopoly and strategic interactions between private firms rather than between governments. In this context, the key model was first proposed by J. Brander and B. Spencer in 1985. This model and a discussion of its limitations are presented in Krugman's book Trade Policy and Market Structure. Briefly, the essence of this model is as follows: two firms - domestic and foreign - compete in the market of a "third" country, selling goods that are not sold in their own markets. The model can be extended by taking into account consumption in the domestic market, which was done in a number of works, but this only complicates the analysis without changing the main conclusions. The number of firms is fixed, that is, new firms cannot enter the market being attracted by high profits. The model is formulated in such a way that the only factor that matters for the national welfare of both countries is the profit of both firms, minus subsidies or taxes. In both states, wages and (at the first stage of analysis) profit before tax are fixed. The goal of national policy is to redistribute profits from the foreign firm to the domestic firm, although there may be a parallel redistribution of income from the country's taxpayers to the owners of domestic firms. The size of the market for combined production is fixed; consumers compete with each other. The government of the "third" country is kept from interfering. The higher the output of one firm, the lower the profits of the other.

The key premise for the simplest version of the model is that the two firms play "Cournot" (the essence of the Cournot model is that each firm treats its competitor's output as constant and then makes its own output decision). On the basis of mathematical equations and the corresponding graphical representation, scientists modeled the interdependence of changes in the total demand for goods in the market of a "third" country, the marginal revenue and profit of each firm, and also put forward the thesis according to which the provision of an export subsidy to a domestic firm will lead to the establishment of optimal domestic production. Scientists have found out the significance of the model within the framework of traditional trading theory. They considered the traditional argument for protectionism, which is built on the concept of the terms of trade and which can be interpreted as evidence in favor of imposing an export tax.

It is known that a trade tax is not Pareto efficient from a global (but not national) point of view in the presence of perfect competition and in the absence of internal distortions not offset by appropriate subsidies or taxes. In considering the case in which the foreign government does not intervene, attention should be paid to one circumstance brought to the fore in the book by P. Krugman and E. Helpman "Trade Policy and Market Structure". If the number of domestic firms exceeds 1, then the case for an export tax gains strength again. Domestic firms compete with each other and generate negative external economies for each other by lowering the price at which each of them trades in the market of a "third" country. As a consequence, it becomes expedient to a certain extent to limit their activities in the field of export. This fits perfectly with the traditional terms-of-trade argument for protectionism. The larger the number of domestic firms, the closer the model meets the condition of perfect competition and the standard formula optimal tariff or export tax. As the authors note, in a model with several domestic and foreign firms, each of which plays "according to Cournot", one can formulate a conclusion in favor of an export tax or an export subsidy.

P. Krugman's studies on tariffs aimed at promoting the development of exports can also be called extraordinary. Here we should refer to his much-cited article "Protection of Imports as Export Promotion: International Competition with Oligopoly and Economies of Scale" 6 . Her argument can also be interpreted in favor of using a tariff in the oligopoly model, but at the same time this article contains an additional consideration that the introduction of a tariff can lead not only to the substitution of imports by domestic production, but also to the stimulation of exports.

Two firms compete in different markets (including domestic ones), playing "according to Cournot" and facing economies of scale. The national government protects the firm of its state in the domestic market. Such protection can be interpreted as a kind of subsidizing. Naturally, this redistributes profits from the foreign firm to the domestic firm. The domestic firm's marginal cost falls, while the foreign firm cuts production and its marginal cost rises. As a result, the domestic firm expands its exports. Thus, P. Krugman shows that import protection acts as a tool to promote the development of exports.

Here the question arises as to the extent to which this conclusion depends on the existence of an oligopoly "according to Cournot". P. Krugman writes: "The thesis according to which the protected domestic market provides the firm with a basis for successful export development, is one of those unorthodox ideas that are commonplace in discussions of international trade, which are not compatible with standard models, but, nevertheless, look convincing to practitioners. structure of the market" P. Krugman and E. Helpman demonstrated that in the case of a "Cournot" oligopoly (although in such circumstances some scholars consider such an assumption somewhat short-sighted), the introduction of a tariff may be the optimal policy from the point of view of the country, provided there is no response by a foreign government.

An important trend within pure trade theory is the analysis of trade under increasing returns to scale, which is seen as the most important independent cause of trade. However, an increasing returns to scale world is also characterized by imperfect competition. Therefore, the development of models of oligopolistic trade and foreign trade policy continues, shifting the focus to the study of the dynamic aspects of the problem. Meanwhile, since the 1980s, empirical research, in which the achievements of representatives of the "new international economy" are used to analyze the rivalry between American and Japanese firms in the automotive market under the conditions of both tariffs and production subsidies.

In 1987, P. Krugman wrote that new developments, in a certain sense, replace the existing theory of international trade or, to a lesser extent, require a radical revision of its conclusions. Such statements suggest that the traditional theory rests on the premise of perfect competition and leads to the conclusion that - with minor caveats - free trade is the best option for trade policy. The new approach, according to P. Krugman, changes the structure of trade theory so fundamentally that theoretical evidence in favor of free trade disappears. From this point of view, the idea of free trade has not yet sunk into the past, mainly because of the political and economic nature.

P. Krugman specializes in the study of international trade policy and, in particular, seeks to explain why some countries gain advantages in trade with others. According to the results of his research, in conditions of large-scale production, trade expands not only between countries specializing in certain types of goods (as is believed according to traditional economic theory). Gradually, not only those states that are at the same level of economic development, but also those that specialize in the export and import of any product become dominant in the market. In turn, this, as a result of the competition of economies in the world market, entails a decrease in product prices.

Krugman's theory also explains the reasons for the urbanization of the world economy. Large-scale production, on the one hand, and the struggle to reduce transport costs, on the other, lead to the fact that an increasing part of the population gravitates towards megacities. The growing population of cities, in turn, stimulates the development of the economy and the growth of production, which, closing the circle, lead to a further increase in the number of inhabitants. As a result, the division of regions into high-tech "core zones" and less developed "periphery" gradually manifests itself.

In 1991, in his work "Increasing returns and economic geography", P. Krugman proposed a mathematically rigorous approach that allows simultaneously modeling both commodity flows and the location of industries and consumers in space. The model formulated by him in this article was called "center-periphery". The results of the scientist's research make it possible to quickly and effectively identify promising areas of development for a particular territory, form appropriate regional networks, and identify areas of intranational and international specialization. His innovative findings are important in the context of the dynamic development of administrative and functional regions in Europe, which has led to the formation of a new spatial structure of this highly integrated global economic system. Separate studies of the possible effects of the development of integration and EU enlargement consider the option of metropolization, which is accompanied by a deepening of regional specialization and differences between regions within countries. In such a scenario, the EU tries to compensate for these discrepancies by redistributing the negative effects of immediate cumulative effects.

International trade is becoming an important factor, because everything that expands the market can contribute to an increase in production and increase its growth rate. Accordingly, the allocation of comparative advantage may be determined either by historical chance ("who came first"), or through net returns to scale, or through learning from experience. Nobel laureate R. Lucas saw the marked connection and created a special model illustrating the endogenous evolution of comparative advantages. He focused on the case of experiential learning: products differ from one another in the extent to which the experience gained in their production leads to lower costs. R. Lucas called goods that are capital-intensive in terms of human capital costs "high-tech". However, the weak point of this scientific idea is that learning curves can be steep at first and then flat, which reflects the transition from a high-tech product to a conventional one.

In 1990, P. Krugman made an important addition to these model constructions of endogenous innovations. He formulated a three-period model. In the first period, entrepreneurs "invest" valuable resources in cost-reducing innovations. Those who are successful at this get a temporary monopoly on their new technology in the second period; they have a rent due to the cost advantage over the producer who still uses the old technology. In the third period, this innovation becomes common property, and the source of rental income disappears. Such out-of-phase sequences can be "brought together", which in turn gives a picture of a continuous process.

This simple construction produces some excellent results. First, it is the possibility of many equilibria. The higher the innovation activity today, the higher will be the real income in the next period. Entrepreneurs who are successful at innovating will be able to earn higher rental income. Therefore, we can talk about a special force that makes investment in innovation profitable in cases where there is a greater amount of such investment (it is obvious that the force that counteracts competition can also have an influence). The economy has enough raw materials for the existence of both equilibria in which no one innovates because no one is doing it, and equilibria in which there is a plurality of innovations. The second result is a clear demonstration of Schumpeter's idea that a monopoly backed by successful innovation, while generating losses in terms of static efficiency, still more than compensates for this loss by investing in innovation. The third result is relevant in the context of international trade. It costs roughly the same in both large and small economies to come up with a cost-reducing technology (which is why international comparisons of R&D costs per unit of GNP are always not entirely relevant). However, each specific innovation has a higher value in a large economy than in a small one, since in the first case there is a significant potential for obtaining rents. This is why international integration can spur innovation and accelerate production growth, which in turn has a greater positive effect than any possible gain from static efficiency.

The world is becoming more complex and interdependent every decade, and our institutions must match these changes. P. Krugman believes that in last years the slowdown in the global economy is increasingly influenced by institutional reasons.

The scientist is an outstanding theorist of international trade. He is the author of several dozen books and over 300 economic works. The main among his monographs, in addition to those already mentioned, are: "Spatial Economics: Cities, Regions and International Trade" (1999, together with M. Fujita and E. Venableson), "Return of the Depression" (1999), "Currency Crisis" (2000 ), "Big Lie" (published in Russian in 2004).

Professor P. Krugman is an active participant in discussions on topical issues of economic policy. Thus, the reform of the international monetary system is still the subject of heated debate among economists and politicians. After all, if in 1950-1973. in the West there was an unprecedented surge business activity and phenomenal economic results generated by macroeconomic regulation and pegging national currencies to the dollar, then in the mid-70s, a crisis of such a development model was ripe. Governments bound by tight foreign exchange obligations have been unable to resist inflation, which has accelerated sharply due to oil shocks and the rapid increase in unemployment caused by the deceleration economic growth. This period of development of the Western economy, known as stagflation, was marked by a transition from Keynesian methods of economic regulation to a more liberal model of public policy. The radical change in the goals and methods of counter-cyclical regulation could not but arouse concern in the political and public circles of the West with the problem of economic stability.

A new page in the history of international coordination was opened after the announcement in 1975 in Rambouillet of the transition to a system of "free floating currencies". P. Krugman outlined his fundamental ideas about such changes in the textbook "International Economics: Theory and Politics" (1988, together with M. Obstfeld), which became quite popular in the world, withstood 7 reprints and since 1998 has already been published twice on in Russian. In the opinion of both scholars, what was essentially sanctioned was "a scheme of decentralized policy-making, where each country does what it considers to be in its own interest."

Previously, most financiers advocated the establishment of floating exchange rates, but in recent years, a significant part of specialists began to consider it expedient to return to fixed rates. Maintaining a stable exchange rate is just one of the many challenges facing the central bank.

For large-scale innovative research, P. Krugman was awarded the Adam Smith Prize in 1995, in 2000 he was awarded the Rektenwald Medal (an economic award awarded since 1995 by the University of Nuremberg for a set of scientific merits), and in 2004 - the Prince Prize Asturias, which is the most prestigious award in Spain (it is often called the "Spanish Nobel Prize").

conclusions

P. Krugman became known primarily for his research in the field of international trade. According to experts, for several years now he has been considered one of the main contenders for the Nobel Prize. And only in 2008, for the analysis of trading patterns and the identification of places of economic activity, he was awarded this most authoritative award. In addition to the gold medal and diploma, P. Krugman also received a cash check, the denomination of which has remained unchanged since 2000 - 10 million Swedish kronor (1.42 million dollars, or 1.02 million euros).

Literature

3. Krugman P. Scale Economies, Product Differentiation and the Pattern of Trade. "American Economic Review" Vol. 70, No. 1, 1980, p. 950-959; Krugman P. Increasing Returns, Imperfect Competition and the Positive Theory of International Trade. "Handbook of International Economics" Vol. 3, 1995, Amsterdam, Elsevier Science.

4. Corden UM. Strategic foreign trade policy. In book: Panorama economic thought the end of the XX century. In 2 vols. St. Petersburg, Economic School, 2002, v. 1, p. 331-348.

5. Krugman P. Import protection as export promotion: international competition in the presence of oligopoly and economies of scale. In: K i e r z k o w s k i H. Monopolistic Competition and International Trade. Oxford, Oxford University Press, 1984.

6. Krugman P. Is free trade pass? "Economic Perspectives" \bl. 1.1987, p. 131-144.

7. Krugman P. Increasing Returns and Economic Geography. "Journal of Political Economy" Vol. 99, No. 3, 1991, p. 483-499.

8. Krugman P. The Narrow Moving Band, the Dutch Disease and the Competitive Consequences of Mis. Thatcher. "Journal of Development Economics" "Vol. 27, No. 1-2, 1987, p. 41-55.

9. Krugman P., Obstfeld M. International Economics. Theory and Politics. M, 1998, p. 575.

SCIENTIFIC LIFE

Paul Krugman: Nobel laureate, theorist of international trade and economic geography

Zakharenko R.L.

The article describes the main works of Paul Krugman, 2008 Nobel Laureate in Economics: a new theory of international trade and a new theory of economic geography. The prerequisites for the creation of new theories, as well as their development by Krugman's followers, are considered.

Key words: increasing returns to scale, international trade, monopolistic competition, economic geography, agglomeration effect.

Introduction

All Nobel laureates in the field of economics can be divided into two types. Some, like Gary Becker or James Heckman, receive an award for a range of scientific achievements made over decades. Others, like John Nash or George Akerlof, win the prize for one or two brilliant papers that have changed the way economists think about the world we live in. Paul Krugman, perhaps, should be attributed to the second type of Nobel laureates - the number of his articles in leading scientific journals can be counted on the fingers; all of his serious publications fall on the period from the late 1970s to the early 1990s, i.e. approximately from the moment of graduation from graduate school until the age of forty. Krugman received his Nobel Prize for achievements in two related topics - the theory of international trade and the theory of the geographical distribution of economic activity. These two theories are discussed sequentially in this paper.

International trade: background

For most of the twentieth century. The theory of international trade was based on the works of David Ricardo, published in early XIX in. and supplemented by Eli Heckscher and Bertil Ohlin in the 1920s. According to this theory, the main mo-

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Zakharenko R.L. – Associate Professor, International Institute of Economics and Finance. The article was submitted to the Editorial Board in January 2009.

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The torus of international trade is the comparative advantages of countries in the production of certain goods. If England is good at making wool and Portugal is good at making wine, then England must export wool to Portugal in exchange for wine. The theories of Ricardo and Heckscher-Ohlin explain the reason for the existence of inter-country differences in different ways (according to Ricardo, comparative advantages are determined by inter-country differences in labor productivity, according to Heckscher and Ohlin - the difference in stocks of factors of production), but the main conclusion of these two theories is the same: than the less similar two countries are to each other, the greater should be the exchange of goods between the two countries. Two identical countries should not trade with each other.

However, after the Second World War, theory began to rapidly diverge from practice. By the end of the 1960s. it became clear to economists that the largest volumes of trade occurred precisely in regions very similar to each other - North America and Western Europe, which traded with each other much more than with dissimilar Third World countries. Moreover, much of the trade between developed countries was and remains "intra-industry" (intraindustry trade), i.e. often two countries X and Y sell almost identical goods to each other, for example cars of different brands. Such trade flows cannot be explained within the framework of the Ricardo-Heckscher-Ohlin theory, and therefore in the 1960s. there was a demand for a new theory of international trade. A number of economists (in particular, Bela Balassa, Herbert Grubel) already then offered a verbal description of the main components of the new theory, subsequently used by Paul Krugman.

Briefly, their ideas were as follows. First, production is characterized by increasing returns to scale - the more a firm produces, the cheaper it is to produce a unit of output. Thus, a dozen auto giants supplying cars around the world will make these cars better and/or cheaper than a few hundred small national manufacturers. Secondly, different firms produce slightly different goods (for example, different brands of cars), and therefore the market is characterized not by perfect, but by monopolistic competition. Therefore, cars made in the USA and Germany can be simultaneously sold in the markets of both countries, creating counter flows of similar goods.

Similar ideas of a new theory of international trade have been in the air for more than a decade, waiting for a researcher to formalize these ideas in the form mathematical model. That person was Paul Krugman, a young professor at Yale University. However, Krugman did not create a model from scratch - he skillfully used the discoveries made shortly before him.

Dixit–Stiglitz preferences

Major scientific advances are often based on previous discoveries. Krugman's "guiding star" was the Dixit-Stiglitz preference function, formulated in 1977 and inspired, in turn, by the power mean formula (Minkowski mean). The Dixit-Stiglitz preference function, in a simplified form, looks like this:


	e x σ	ù σ

êê		ú ú .
ë êi =1 ,...,n

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This function allows you to create models with an arbitrary number of similar but different products i , and the elasticity of substitution of one product for another is uniquely determined by the parameter σ . The demand for product i , depending on its price p i and prices for other products p j , looks like this:


	x = Kp
	x = Kp


		å p − j
		å p − j

j =1,...,n

Where Y is the total income/expenditure of consumers; the expression in the denominator (3) can be interpreted as a general price index.

Such a preference function is very convenient for modeling monopolistic competition: each firm produces its own product i ; because the products are slightly different, firms sell their product at a price above marginal cost, which allows them to cover the fixed costs of production. The number of firms (and, accordingly, goods) n is endogenous and is determined by the zero profit condition.

Krugman model

It was this scheme that Krugman used in his articles. His model of the firm is fantastically simple: the labor cost of producing x i units of a good by firm i is

li = α + β xi ,

Here α are fixed costs and β are marginal costs. This formulation implies increasing returns to scale - the larger the output x i , the lower the average cost l i /x i . Each firm, maximizing its profit, sets a price

(4) p i = w σ β ,

ãå w is the wages of workers, which can be taken equal to one1) . As mentioned above, the number of firms (and, accordingly, goods) n is determined by

lyatsya within the model. If there is only one firm in the market classic model monopoly), the demand for its products is high due to the absence of competitors (large value of the parameter K ), this firm sells a lot and, as a result, has low average costs and high profits. Large profits attract new firms to the market, each of which offers its own variety i of the product. As the number of firms increases, the sales of each of them fall, which increases the average cost of production. The process continues until the average cost equals the price.

1) Formula (4) does not take into account the influence of p i on the parameter K . If the number of firms n is large enough, this influence can be neglected.

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Effects of international trade

Suppose now that two countries, each with, say, ten firms, start trading with each other. Now, instead of two small markets, one big one appears. The effects of such consolidation, as it is easy to prove, are the following:

∙ the number of firms represented in the market of each of the countries is increasing - in addition to domestic ones, foreign manufacturers also appear. Instead of ten, the number of firms becomes, say, fourteen;

∙ the total number of firms in the world is declining - in this case, from twenty to fourteen;

∙ each of the remaining firms in the market becomes larger and, as a result, more efficient.

The predictions of the model fit well with the practical experience of Western countries - the removal of trade barriers after the Second World War led to the consolidation and globalization of business, as well as the departure a large number manufacturers from the market.

Unlike the Heckscher-Ohlin theory, according to which globalization creates both winners and losers, Krugman's theory predicts that virtually all participants benefit from globalization - by lowering average production costs and bringing a greater range of products to the market. The losers are probably only the top managers of closing firms, whose role is not formalized in any way in the model. Workers from closing firms simply move into larger firms.

However, do not forget that the Krugman model was created primarily to describe trade between industrialized countries; to explain trade between rich and poor countries, the Heckscher-Ohlin theory is still valid. This was well understood by Paul Krugman himself, who repeatedly emphasized that his theories were of little use to developing countries.

After Krugman: Mark Melitz and modern theory international trade

Until the 1990s The main unit of analysis in the theory of international trade was the state. In the 1990s, thanks to new and more detailed data, research interest began to gradually shift to studying the impact of trade on specific firms. In Krugman's theory, as we saw above, firms were also present, but they were perfectly symmetrical, which is in stark contrast to reality: in practice, we observe a huge difference in the size and productivity of firms coexisting in the market. For example, the world-class giant McDonald's and private entrepreneurs selling at the station are simultaneously present in the fast food market. In addition, not all firms enter the export market at the same time, as in the Krugman model, but only the most productive and, as a rule, the largest; small firms in the process of globalization become even smaller or even close.

To explain all these facts, the model with symmetrical firms is no longer adequate; thus, at the turn of the millennium, there was a demand for a new theory in which large and small firms coexist, with the former becoming larger and entering export markets in the process of globalization, and the latter becoming smaller or disappear altogether.

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This theory was proposed by Marc Melitz, then a graduate student at the University of Michigan, in 1999 (published 2003). The main elements of the Melitz model - Dixit-Stiglitz preferences, the presence of fixed production costs - coincide with the Krugman model. The main difference is that

that the marginal cost of production β is not the same for all firms, as in Krugman, but is distributed according to some distribution function. Least

efficient firms (for which β is higher than a certain threshold determined within the framework of the model), unable to withstand competition, leave the market, others remain and

earn a positive profit. To find out his β, the entrepreneur must incur some one-time expenses for business organization; in equilibrium, these costs are exactly equal to the expected profit from the business.

With globalization, the threshold value of costs β decreases, i.e. the relatively inefficient firms that survived the isolated economy must now close.

Of the surviving firms, not all become exporters - due to the existence of additional fixed export costs, access to overseas markets becomes the lot of the few, most efficient firms.

Melitz's model became instantly popular among international trade economists, just like Krugman's model twenty years earlier. It is possible that in another twenty years Melitz will receive the award won by Krugman last year.

Krugman and geography

Having received fame in the early 1980s as an innovator of the theory of international trade, in the early 1990s. Krugman became famous again - as an innovator in the theory of economic geography.

The theory of economic geography arose in the first half of the 19th century. Its founder is considered to be the German scientist Von Thünen, who studied the issue optimal use land around cities. Von Thunen, however, did not say anything about where these cities come from - he considered their existence an axiom. The answer to this question, however, is not at all trivial - indeed, why do the populations of countries gather in several major centers rather than being distributed evenly throughout the country? In Russia, according to a rough estimate, 95% of the population lives in 5% of the country's territory. Even if we consider only European Russia with a temperate climate, a high concentration of population at several points is evident. The first theoretical explanation of this fact was proposed by Alfred Marshal at the beginning of the 20th century; he identified three main reasons.

∙ Entrepreneurs try to locate their production, ceteris paribus, close to the sales market, as well as close to the main suppliers. This leads to a concentration of production. Concentration, in turn, attracts more and more new producers.

∙ In a large labor market (i.e. in big cities) it is easier to find highly specialized workers - for example, actors for a theater or journalists for a newspaper. Thus, all people of similar professions are concentrated in cities.

∙ In big cities, due to more intensive interaction of people, new knowledge is acquired faster; residents of big cities have better access to information; new knowledge and technologies are being created faster.

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Krugman formalized the first of these ideas as an economic model. Paradoxically, the Dixit-Stiglitz preference function again helped him in this.

According to the Krugman agglomeration model, there are two types of goods in the economy: industrial (subscript M ) and agricultural (A ). Moreover, agricultural goods are assumed to be standard (i.e., all firms produce the same thing), while industrial goods produced by different firms differ from each other. The consumer utility function looks like this:

U = C M μ C A μ −1,

		ù σ
C M =
C M =	ê ê å x σ	ú ú .
	ë êi =1 ,...,n

Here, the total utility (5) is the standard Cobb-Douglas function, and the function (6) is composed in the spirit of Dixit-Stiglitz preferences and can be considered as some kind of utility from the consumption of manufactured goods.

The production of agricultural goods is characterized by constant returns to scale. For simplicity, let's assume that one farmer can produce one unit of agricultural commodity. The production of manufactured goods works in the same way as in the Krugman model of international trade: in order to produce x i units of goods, firm i must hire l i = α + β x i workers, which actually means increasing returns to scale. It is assumed that peasants can only produce agricultural goods, and workers only industrial goods, so wages in the two sectors may differ.

Further, says Krugman, suppose the world consists of two regions, 1 and 2, that differ only in the number of workers, L 1 è L 2 . There are some costs associated with transporting goods from one region to another - for simplicity, Krugman assumes that a certain fixed proportion of the goods disappears, or "melts", during transportation. The equilibrium in the model consists of the following components:

∙ the wages of peasants in both regions are equated to one, respectively, equal to one and market price agricultural goods;

∙ the price of industrial goods, as in the model of international trade, is determined by formula (4);

∙ the number of firms (and goods) in the market is determined by the condition of zero profit of firms;

∙ the wages of workers are determined by the condition of their full time. Suppose the majority of workers are concentrated in region 1 (i.e., the ratio

the solution L 1 / L 2 is large). In which region will the salary be higher? The answer is ambiguous, since two opposite effects affect wages:

∙ in the first region there are many workers, larger firms and, accordingly, higher labor productivity (agglomeration effect). This increases the wages of workers in the first region relative to the second;

∙ in the second region there are few suppliers of industrial goods (transportation from the first region is expensive), with the same number of peasants consuming industrial goods. Accordingly, local workers are "scarce", which increases their wages relative to wages in the first region.

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Suppose now that workers can move from one region to another. Their decision will depend on the level of nominal wages, as well as on the general price level, which, other things being equal2), is lower in more than major region. In this way,

∙ if transport costs are low and increasing returns to scale are significant, workers will move from region 2 (where there are few) to region 1 (where there are already many), and eventually all workers may end up in region 1. In effect, agglomeration will occur: region 1 will turn into an industrial center,

à region 2 - to the periphery;

∙ if, on the other hand, transport costs are significant and economies of scale are negligible, workers will be distributed equally between the two regions.

As with the new theory of international trade, Krugman's work in economic geography seemed unusual, yet simple and intuitive. In addition, the proposed mathematical formulation turned out to be quite convenient and universal for numerous modifications and upgrades that subsequently appeared in in large numbers. It can be said without exaggeration that Paul Krugman revived the interest of the scientific community in economic geography and the theory of the location of economic activity.

Journalism: Krugman on the need for mathematical modeling

For the past decade and a half, Paul Krugman has been more of a publicist than a scientist. He became known to the general public in the United States long before receiving the Nobel Prize as a columnist for the New York Times. Krugman's colleagues note his extraordinary ability to explain complex things. plain language. Avinash Dixit (co-author of Dixit-Stiglitz Preferences) wrote: "Even if he were not a particularly valuable academic economist, he could have made a career as a translator from economic English to spoken English."

In particular, Krugman gave an unusual and simple explanation for the decline in interest in the theory economic development 3) in the late 1950s. and its subsequent revival in the late 1980s. He compared the evolution of economic development theory to the evolution of cartography. In the XV-XVI centuries. the entire territory of Africa was mapped. Of course, the quality of the maps left much to be desired, they gave distorted ideas about the distances between settlements, but still there was, by and large, all the information about the continent. In the 18th century, however, the situation changed: on the one hand, the quality of information about the coastline increased, on the other hand, territories far from the ocean completely disappeared from the map - the entire interior of the continent turned out to be a “blank spot”. The explanation for this fact is very simple: by the XVIII century. methods appeared exact definition coordinates. Because of this, the quality of coastline information has increased; because of this increased General requirements to the quality of maps, and cartographers were no longer willing to publish information about the African outback, based solely on rumors and stories of travelers. Over time, by the 19th century, the map of Africa became complete again, as accurate data about the outback also appeared.

2) First of all, with equal nominal wages.

3) Economic Development is a theory that studies the reasons for the lagging behind of third world countries.

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Much the same thing, Krugman argues, happened to the theory of economic development. By the middle of the twentieth century. this theory was predominantly verbal. However, other areas of economics were rapidly “mathematizing” due to the improvement in the quality of empirical data and the increasing level of mathematical training of economists. As a result, against the background of other areas of economics, the theory of economic development began to look less convincing, and interest in it fell.

In the late 1980s this theory was revived due to the emergence of formal economic models. For example, in 1989, economists Murphy, Shleifer, and Vishny formalized the well-known Rosenstein-Rodan theory of the “big push”, created in the late 1940s. Thus, the theory of economic development returned to the general map of economic thought, drawn up according to new, mathematicized standards.

Conclusion

As his colleague Anivash Dixit wrote about Krugman, Krugman's theories were always timely, simple, and convenient for many applications. The reaction of fellow economists to Krugman's model was, in Dixit's words, "a mixture of admiration and annoyance." Apparently, such a reaction is an essential feature of any revolutionary idea.

BIBLIOGRAPHY

1. Dixit A. In Honor of Paul Krugman: Winner of the 1991 John Bates Clark Medal. (http://web.mit.edu/krugman/www/dixit.html)

2. Dixit A., Stiglitz J . Monopolistic Competition and Optimum Product Diversity // American Economic Review. 1977. No. 67.

3. Fujita M., Krugman P., Venables A. The Spatial Economy. Cities, Regions, and International Trade. The MIT Press, 2000.

4. Krugman P . Increasing Returns, Monopolistic Competition, and International Trade // Journal of International Economics. 1979. ¹ 9.

5. Krugman P . Scale Economies, Product Differentiation, and The Pattern of Trade // American Economic Review. 1980. No. 70.

6. Krugman P . Intraindustry Specialization and the Gains from Trade // Journal of Political Economy. 1981. ¹ 91.

7. Krugman P . History Versus Expectations // Quarterly Journal of Economics. 1991.

No. 106.

8. Krugman P . Increasing Returns and Economic Geography // Journal of Political Economy. 1991. ¹ 99.

9. Krugman P. The Fall and Rise of Development Economics. (http://web.mit.edu/krugman/www/dishpan.html)

10. Melitz M. The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity // Econometrica. 2003. No. 71.

11. Murphy K., Shleifer A., Vishny R.. Industrialization and the Big Push // Journal of Political Economy. 1989. No. 97.

Abstract: American economist Paul Robin Krugman. Economist Paul Robin Krugman Paul Robin Krugman

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