| Abstract | New Economic Geography, which appeared in the early 1990s, is a branch discipline of economics which focuses on the spatial distribution of economical activities. It is a major innovation of post-war economics theory. It remedies the shortcoming of economics on the spatial problem, meanwhile modifies traditional economic geography through formally and strictly economical modeling. This paper reviews the theoretical origin of new economic geography and its main three branches, named as “discrete space branch”, “continuous space branch”, and “OTT framework branch”. The discrete space branch derives directly from New Trade Theory and stipulates several discrete regions. The continuous space branch retains the tradition of economic geography and focuses on the location problem in a continuous space. The OTT framework branch is a reformation, which abandons ‘ice-burg’ transportation cost, and is more applicable and more potential for theoretical development. |