1. The Core and Periphery Theory
Raeisa Perreira
Geography Presentation
Ms. Collymore
7.2.06

2. Introduction
The origin of the core and periphery model can be traced back to a number of interrelated developments, which occurred during the mid twentieth century. It was first introduced by Krugman (1991).
The model describes the spatial imbalances in economic development at all scales. Due to the advantages for an economic activity to locate near other activities, there is a tendency for economic activities to concentrate around a central point, usually in urban centers. (economies of agglomeration)

3. Development of Core and Periphery
In many countries, particularly the less developed, the concentration of activities at certain points results in the division of the country into two main types of regions namely, the flourishing core region and the disadvantaged peripheral region.
The peripheral regions benefit the urban centre from the economic activities through access to employment, markets for agricultural produce and access to services.
Within many spatial systems sharp territorial contrasts exist in wealth, economic advancement, and growth-"development"- between economic heartlands and outlying subordinate zones

4. Difference between Core and Periphery
The core and periphery are interdependent although they greatly differ in characteristics.
The core covers a very small area but economically it is dominant since it has a heavy concentration of economic activities. Infrastructure is highly developed and it is the center of innovation. Population density is usually high in the core and government and administrative functions are concentrated here.
The periphery covers a very large area and infrastructure is poorly developed and the economic activities are within the primary sector. The GDP is very low and the periphery is in a subordinate position to the core.

5. Characteristics
The Core-Periphery model helps explain why some inner city areas enjoy considerable prosperity, whilst others display all the signs of urban deprivation and poverty.
As shown in the diagram on the following page, Services, investment and jobs are concentrated in the core Central Business District (CBD), but accessible inner city areas may benefit from a trickle down of wealth from the core. For example, in some areas there may be a through-flow of office workers to the inner city seeking low-price lunchtime meals. The core also provides work for inner city residents.

7. Characteristics Cont’d
The development of new industry in parts of the inner city encourages the concentration of further industrial activity via 'cumulative causation' or multiplier effect as shown in the model following.

8. Simplified diagram to show the development of an industrial region (after Gunnar Myrdal)

9. Myrdal’s Theory of Core and Periphery
Myrdal (1957), argued that core regions of the space economy are progressively becoming more and more developed. He argues that if events or economic activities follow an uncontrolled course, backwash effects perpetuates growth in the expanding core region and retards growth elsewhere. The result would be a widening of the gap between the rich and the poor due to the little investment that does occur in the inner city becoming concentrated close to the CBD. This is illustrated in the diagram below, a reversal of the core-periphery model.

10. Myrdal’s Model

11. Friedman, Core and Periphery
Friedman (1966) extended the original core-periphery model to include core, upward transitional, downward transitional, resource frontier and special problem regions.
In the model the core remains unchanged and continues to occupy the central position in the system. Core regions are characterized by their promise for economic growth
The periphery, however, is divided into upward and downward transitional, resource frontier and special problem regions.

12. Friedman’s Model

13. Combination of Myrdal and Friedman’s theories

14. Application of Model to Venezuela
Friedman applied his version of the core and periphery model to the analysis of the spatial economy of Venezuela. After ha made a study of the population characteristics, settlement patterns, patterns of structural persistence and elements of structural change, he demarcated the space economy of Venezuela into development regions according to the model he formulated. He also suggested planning approaches, which would provide guidelines for development of each regional type.

15. Core-Periphery: Advantages
A strong point of the research is that the use of the extended model, where there is the core and four types of peripheries, is more realistic than the use of the original core-periphery model
In reality regions of a country show more variation in development levels and it is unfair to simply make a distinction between only two categories.
More variety increases accuracy when such an extended model is used for the distinguishing of a national space economy.

16. Core- Periphery: Disadvantages
Different researchers working on the same spatial economy and using the same model may come up with slightly different demarcations of the spatial economy.
Due to a lack of fixed, quantitative values or indicators, some regions may be considered core while others are considered part of the upward transitional region.

17. Summary Characteristics of core areas: Major centers of growth
Highly developed
Urban/industrial based
Centers of decision-making (political/financial)
Attract workers, investment and raw materials
Characteristics of peripheral areas:
Have marginal locations
Offer poor job opportunities
Have lower standards of living
Over-dependant on the primary sector
Few major centers of urbanization
Suffer from out-migration

18. Summary
Core areas can change through time. Some areas, which once were part of the core, may now find themselves disadvantaged due to the loss of their initial attraction. The decline of coal mining and the subsequent decline of associated industries in the Sambre-Meuse is a good example of this reality.
The core/periphery situation can be viewed at both national and international level. Most countries have a national core, which is usually centered around the capital city, e.g., Dublin, Ireland or Paris.
Sometimes core regions develop away from capital cities, e.g., Western Plain of Lombardy or the Ruhr in Germany.

19. Conclusion
Based on the information, the core and periphery theory is a very applicable and useful part of developmental research. The assumption in the core-periphery model is that economic development will diffuse from the core to the periphery and the inequalities between the core and the periphery will disappear through time. No country has yet managed to reach a stage where there is no distinction between the core and periphery but the hope is that it will happen soon.

20. Thank You for your co-operation
Have a wonderful day and God bless!