Paul Krugman, New Trade Theory and New Economic Geography

New trade theory emerged as an explanation of trade in the late 1970s onwards with the pioneering work of Krugman (1979, 1980, 1981, 1986, 1990), Helpman and Krugman (1985, 1989), Brander (1981), Brander and Krugman (1983) among others.