Geography and Trade

This concise volume tackles the puzzling question of why economic activity clusters in specific regions, a phenomenon long overlooked by mainstream economics. Nobel laureate Paul Krugman brings his signature accessible style to economic geography, explaining how industries naturally concentrate in certain locations despite globalization. He addresses the field's historical neglect by economists who lacked proper analytical frameworks, then builds compelling models showing how transportation costs and market size create powerful centripetal forces. The book masterfully connects abstract theory to real-world patterns, from Silicon Valley's tech dominance to Detroit's automotive heritage.

Krugman's great achievement lies in making spatial economics feel both intellectually rigorous and immediately relevant, blending personal reflection with sharp economic intuition. Readers interested in urban development, international trade patterns, or regional inequality will find his synthesis particularly illuminating. The book's lasting impact comes from providing the missing conceptual tools to understand why place still matters profoundly in an increasingly connected world, fundamentally reshaping how we think about the map of economic activity.