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But while in some respects these factors are providing incentives to greater centralisation of production, the diseconomies of over-centralisation and excessively large concentrations of industry are beginning to become evident. An industrial entrepreneur, in deciding where to establish a new plant, will take account of economies external to the plant but internal to the industry so far as they may be expected to affect his own costs and efficiency. He will not ordinarily - unless forced to do so by government - take account of the marginal diseconomies which his presence may be expected to impose on others through his decision to locate in the overcrowded region, except to the extent that they may be expected to fall on his own enterprise.

It is interesting to read what Moscovici 3 has to say about the reactions of entrepreneurs and of the population of a French problem-area in face of the phenomenon of unemployment. They have known this 1 S. Ossowski, 'Social Conditions and Consequences of Social Planning'. A. Congress, Stresa, 1956. • J. , La Calabrie, une region sous-diveloppeedel'Europe mediterraneenne (1960) p. 201 ff. 3 S. Moscovici, Reconversion industrielle et changements sociaux. Un exemple: Ia chapellerie dans l'Aude (1961) p.

OOOs 1801 POPULATION CHANGES IN CERTAIN EARLY INDUSTRIAL REGIONS 1801-1951 TABLE THREE ~ ~ ~ - ~- ::i ~ c:. ::: c:. 1:) - §" ~ ~ tl... § ~ c:. ~ ::: 2 c:. -cs· t'-< I § ~- <::3- c:. 14 The Theoretical Background economic activities in terms of a set of simultaneous equations relating only to current technical considerations. One of the principal factors in determining the location of capacity in any activity is the location of the market for that activity and in particular the location of that part of the market which is currently least well served by existing capacity.

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