Christaller's central place theory

Development Theory

1. C hristaller's Central Place Theory

2. Presentation outline What is central place theory (CPT) ? What are the assumptions there? Concept of CP The main three principles Application of the theory Application of the theory in Sri Lanka 6/1/2018 2

3. What is central place theory (CPT) ? The theory was originally published in 1933 by a Walter Christaller ’s, who studied the settlement arrangements in southern Germany. It’s all about picking a right place to get more profit for a new business by attracting more costumer. Central Place Theory (CPT) is an attempt to explain the spatial arrangement, size, location of human settlements in relation to one another, the amount of market area a central place can control, and why some central places function as hamlets, villages, towns, or cities. 6/1/2018 3

4. What are the assumptions there? A n isotropic (all flat) surface A n evenly distributed resources A n evenly distributed population with similar purchasing power T ransportation costs equal N o excess profits 6/1/2018 4

5. Concepts of CPT There are three main concepts….. 6/1/2018 5

6. Central place Central place is a market area for exchange of the good and services by people attracted from surrounding area that it is centrally to maximize the accessibility . It also called as a Hinterland or Nodal region There are many, Each center will supply particular types of goods forming levels of hierarchy. 6/1/2018 6

7. Threshold and Range Threshold the minimum population that is required to bring about the provision of certain good or services Range of good or services, the average maximum distance people will travel to purchase goods and services. Circular shape of the market areas results in either un-served areas or over-served areas. To solve this problem, Christaller suggested the hexagonal shape of the market 6/1/2018 7

8. Higher order and lower order settlement Settlements that provide more goods and services than do other places are called higher-order central places . Lower-order central places have small market areas and provide goods and services that are purchased more frequently than higher-order goods and services. “Higher order” goods and services are those with a wider range and higher threshold, located in larger urban centers “Lower order” goods and services are those with a narrower range and lower threshold, located in smaller urban centers. 6/1/2018 8

9. Central place 6/1/2018 9 Continued…. Threshold Market area Range

10. The main three principles The marketing principle (K=3 system) The transportation principle (K=4 system ) The administrative principle (K=7 system ) 6/1/2018 10

11. The marketing principle This principle use to minimize total number of settlements serving a region For each of the largest settlements in the hierarchy there are on average 3 proximal settlements of the next size down in the hierarchy, for each of these again there will be on average 3 proximal settlements of the next size down in the hierarchy 6/1/2018 11

12. The transportation principle This principle use to minimizing the road Lengths joining all adjacent centers. The distribution of central places is most satisfactory when as many important places as possible lie on one traffic route between two important towns, the route being established as straightly and as cheap as possible. 6/1/2018 12

13. The administrative principle It was based upon the awareness that from a political or administrative viewpoint The market areas of the smaller settlements are completely enclosed within the market area of the larger settlement. 6/1/2018 13

14. Advantages and Limitation of CPT Advantages No other economic theory explains why there is a hierarchy of urban centers. describing the location of trade and service activity. describing consumer market oriented manufacturing relevant information about what kind of trade or service enterprise will likely work, Limitation Large areas of flat land rarely exist-transport is uneven . There are many forms of transportation- cost cannot be proportional to distance. People and wealth are not evenly distributed. People do not always to the nearest place. Purchasing power of people differs. Perfect competition is unreal-some make more money than others. Shopping habits have changed. reality, places have several which changes over time. 6/1/2018 14

15. Application of the theory “7 hypotheses on place marketing ” written by Mikael Jonasson & Thomas Niedomysl in 2016 which is utilize the central place theory to the market planning to attract more capital. In this article they stay from central place theory and discuss its potential for providing a structure for place marketing research. They argue that place marketing is essentially used as a means to improve competitiveness in a hierarchical spatial system and they examined how CPT can be used to stimulate and provide a partial and tentative framework to illustrative the spatial interdependence of places. From that framework they have come up a range of hypotheses for future research to build upon to test empirically . 6/1/2018 15

16. Application of the theory in Sri Lanka Christaller’s assumptions are mostly deniable when we check that context to our country “Evaluating New Towns in the context of Mega Projects”. This case study is mainly focus on the mahaveli project. They seek to apply the central place theory to design the settlements. “ An Analysis of Urban Growth and Urbanization in the Sabaragamuwa Province, Sri Lanka” In first they mainly try to distribute the settlements to give the benefit in regional level. 6/1/2018 16

17. Continued…… Attracting more investment opportunities is the need of the time to Sri Lanka. For that we must have a good investment climate and more sources to investing which yield more profit Emergence of the marketing research all over the region is more welcome to the situation. For that case we can test the above hypothesis which derive from the central place theory to evaluate the market planning methods in our country, also we can derive some more hypothesis accordance to our country context. From that we can check whether we are capable enough to attract the foreign direct investment through the market planning.it is not only for the FDI we can also increase our local capital investment by the place market planning in regional level. 6/1/2018 17

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