New economic geography in explaining spatial development
The article summarizes the main results of the New Economic Geography (New economic geography, NEG). It has been shown that the NEG seeks to explain why there is inequality in the spatial distribution of economic activity of agents, from international and regional to urban and local levels. To that end, NEG identi ed the microeconomic foundations of centripetal forces leading to concentration of economic activity and centrifugal forces leading to dissipation of economic activity of agents at the regional and urban levels. The article provides an overview of basic NEG models, the development of NEG models to multiregional models, which allows to describe sorting, agglomeration and selection in cities.