Krugman's new economic geography model, the “centre-outside model”, sums up the fact that krugman's new economic geography was created in the 1990s, mainly by the theme of space for economic activity. The underlying theory is whether economic activity will be spatially concentrated or fragmented, depending mainly on who dominates both the motivation for industrial concentration and the reduction of the centrifugal power of industrial concentration. The driving forces for the geographical concentration of industries include, inter alia, the effects of market size, adequate labour markets and purely external economics. Industrial concentration can facilitate the generation of an adequate labour market, especially for skilled labour, while also providing a broader employment space for the labour force. With the spillover effect of information, regional concentration of economic activity creates a purely external economy. The centrifugal forces that contribute to the decentralization of economic activity include the inflexibility of elements, tenancy and purely external non-economicity. The element of non-mobility refers to the determination that land and natural resources are non-mobility due to natural conditions, that labour is not free to move internationally because of national constraints, and that they are an obstacle to industrial concentration, both from a supply and a demand point of view, because business production has to go to a place where labour is available. And the decentralized elements create decentralized markets, which will motivate some firms to choose the production of goods close to consumers. The concentration of economic activity has been accompanied by an increasing demand for land in the region, with the result that higher land rents have been raised, preventing further concentration of economic activity. A further concentration of economic activity, on the other hand, would create a purely external non-economic character such as congestion. The krugman model, based on the theory of non-linear dynamics, has built three basic models, namely, centre-outside models, historical and prospective models and regional specialization models, using research methods such as scale-based increments and incomplete competition, fixed-rate transport costs, process evolution and dynamic simulations. Based on a comprehensive review of the literature on the new economic geography model of krugman, this paper focuses on one of the most representative models, namely, the centre-peripheral model. Centre - the problem with peripheral models is: in two regions with exactly the same external conditions, where there is an increase in remuneration, population movements and transport costs that interact, why manufacturing is concentrated in some developed regions rather than in relatively less developed ones, and when is that happening? To solve these problems, the model starts by assuming that there are two regions and two sectors in the world economy. The two regions have the same preferences and technologies, the same initial conditions. Two sectors of the world economy exist: a fully competitive agricultural sector with constant pay; and a competitive manufacturing department with increased pay on a scale
