The “New Geography” of the Global World

Abstract

Since 1990 there has been a dramatic increase in economic research on economic geography. As regards the opinion of Paul Krugman, definition of economic geography is the following: the location of production in space. "New economic geography" differs from traditional economic geography in adopting a modelling strategy, namely there are the traditional location models, the "new trade" and the "new growth theories".

Many economic activities are markedly concentrated geographically. This paper has examined the concentration spatial tendencies of the global world economy. The main elements of the global market are the rapid technological progress (especially communication technologies), transnational corporations and the determining role of international financial relationships. The focus is this paper is on thé spatial structure of there driving forces of the globalisation process.

The main elements of the spatial structure of the global world economy are the following:

• The concentration of economic activity in the global world is very important, but there are deconcentration tendencies, too.
• The relative interpretation of the geographical location is primary.
• In the global world market the dominating role of the historical structure of geographical places has been transformed partly into the network of the spatial flows.
• The present world economy has been formed not only on the bacis of the national states, but on the hierarchical spatial structure of the metropolitan areas and capital cities.