1 Introduction
This paper presents a national regional economic geography model that facilitates the
empirical analysis of industry concentration. The model draws on the theoretical contributions of
regional economists to economic geography (von Thünen, 1842; Weber, 1909; Losch, 1954;
Boudeville, 1963; Pottier, 1963; Paelinck and Nijkamp, 1975), and presents a national regional
framework for the analysis of industry location and relocation between the regions within a country.
The current empirical economic geography literature (Brülhart and Torstensson, 1996; Davis
and Weinstein, 1998; Forslid et.al.,1999; Midelfart et.al., 2000) that examines changes in industrial
concentration follows the generally accepted theoretical core periphery theme (Krugman, 1991b;
Krugman and Venables, 1995; Fujita, Krugman and Venables, 1999) that the core is characterised by
industrial countries, such as the countries belonging to the EU geographic core.1 The periphery is
characterised by countries with a relatively less developed industrial structure than the core, and a
relatively larger emphasis on agricultural production, such as those countries belonging to the EU
geographic periphery.
In departing from the conventionally accepted country analysis, Davis and Weinstein (1999)
examine the home market effect of the new economic geography at the regional prefecture level in
Japan. The authors, however, do not develop a formal national regional economic geography model
within which to analyse industry concentration and changes therein. This paper aims to fill that gap in
the empirical literature by presenting a national multi-regional model.
The objective of this paper is fivefold. First, to revive and embrace the regional nomenclature as
developed by regional economists. Second, to define the term ‘an agglomerate’ as the central place of
production concentration. Third, to develop a national multi-region model based on von Thünen’s
concentric circle theory. Fourth, to classify the region types in each of the EU member countries. Fifth,
to introduce stylised economic geography facts about the structure of the CAP regions. The paper will
not examine industry concentration or the endogenous forces of economic geography. The sole
1 Countries belonging to the EU geographic core are considered to be: the UK, Belgium, Luxembourg, the Netherlands,
Germany, France, and Italy. Countries belonging to the EU geographic periphery are Ireland, Denmark, Sweden, Finland,
Spain, Portugal, and Greece.