Why do countries trade with each other? Economists have asked this question at least since the days of David Ricardo. The old trade theory cannot explain trade among industrialized countries with similar compositions of capital and labor. That's why Paul Krugman and his generation developed the new trade theory. The new trade theory, however, fails to address a striking recent phenomena: the enormous growth of trade in intermediate goods within the multinational corporation. That's where Dalia Marin comes in with what she calls the "new new trade theory." Read more
The Institute for New Economic Thinking takes a broad view of economic research and supports it in many ways: through its main grant program, through working groups it organizes, and via conferences, panels, and other smaller gatherings of scholars across the globe.
Institute scholars normally publish their work in journals and books. While many – but far from all – of this work appears in working papers sponsored by the Institute and other leading research forums, the Institute also attempts to make its research results accessible to a wider public on its website. Below is a sampling of interviews featuring Institute scholars explaining the significance of their research in non-technical terms.