Trade and spatial economic interdependence

Regional scientists have had a long fascination with spatial economic interdependence, initially stimulated by the development of a suite of models in Isard (1960). In recent years there have been two major developments; first, a movement towards greater integration in model development not only with large-scale models, but also with careful attempts to make more components of the system endogenous. The second development has been the pursuit of greater integration than in earlier studies between theory and applied regional economic modelling, most notably in the area of trade and economic development. We explore some of the recent developments of this latter approach and provide an assessment of the current state-of-the art of some future opportunities.