A Regional Core, Adjacent, Periphery Model for National Economic Geography Analysis

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The straightforward statistical analysis of the economic data for the total population of CAP
region types across the EU economic geographic area supports von Thünen’s concentric circle theory
of an inverse spatial geographic relationship of declining per capita incomes and distance from a
central location. The theoretical foundations of the CAP model are supported by the positive
relationship between the spatial location of population density and per capita income. These salient
outcomes are revealed by the introduction of an adjacent region at the national level. The introduction
of this third region provides a seamless spatial continuum of geographic locations for economic
activity.

The inter-temporal data analysis reveals the CAP structure to be constant. The developments
of the economic and demographic variables provide preliminary evidence of the theoretical forces of
the home market and competition effects as described in the new economic geography theory
(Krugman, 1991b). The dynamics released by the forces of economic integration seem to initially
affect the core agglomerates within a country, spread to the lower cost adjacent regions, and into the
periphery regions.

Subsequent research should explore the effects of trade liberalisation on industry (re)location
and concentration in the CAP clusters of national economies. The research should focus on the
characteristics of industries (Midelfart et. al., 2000) that locate in the region types as well as the
geographic location of regions and their characteristics that enable them to attract industry types.

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