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Core-Periphery Theory

The core-periphery theory differentiates more developed core regions from less developed periphery regions. The core has higher concentrations of people and wealth, with more jobs, services, and infrastructure. The periphery has fewer opportunities and relies mainly on agriculture, extraction, and selling raw materials to the core cheaply. This relationship can drain the periphery of resources and labor as finished core products are sold back at higher prices, limiting the periphery's development compared to the growing core.

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Sandra Mohamed
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1K views1 page

Core-Periphery Theory

The core-periphery theory differentiates more developed core regions from less developed periphery regions. The core has higher concentrations of people and wealth, with more jobs, services, and infrastructure. The periphery has fewer opportunities and relies mainly on agriculture, extraction, and selling raw materials to the core cheaply. This relationship can drain the periphery of resources and labor as finished core products are sold back at higher prices, limiting the periphery's development compared to the growing core.

Uploaded by

Sandra Mohamed
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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CORE-PERIPHERY THEORY

- Differentiates the more developed regions (core) from


the less develped regions (periphery)

CORE: - Has higher concentration of people and wealth


- higher standard of living
- There are schools, hospitals, shopping centre, ..
- More employment opportunities
- People tend to be involved in service industry
and investment sectors.

PERIPHERY: - Fewer job opportunities


- Mainly involved in agricultural activities &
extraction of raw materials
- Limited services, hospitals, poor
infrastructure, etc...

•In a core-periphery relationship, the core sometimes develops at the


expense of the periphery. E.g. When people from LDCs move into DCs
to find jobs, the LDC is drained with of labour and wealth.
•The core countries imports raw materials from the periphery countries.
As these raw materials are not processed, they are sold to the core at
very low prices. The core country, in turn, processes the raw materials
to make useful products, thus adding value to it.
•These useful or finished products are then sold to the periphery at a
higher price than the cost of the raw materials. Thus, the core
country makes a profit.

- Many people in the periphery country purchase the finished products


imported from the core country because they are cheaper than buying the
same product produced in their own country. Due to lack of necessary skills
and technology for efficient and cost-effective manufacturing,productin cost
of manufacturing the same goods in the periphery country are usually
higher. Furthermore, the core countries are able to subsidise production cost.

- For the periphery country, the sale of raw materials is not sufficient to
contribute significantly to its economic growth; so while the core country
continues to develop, the periphery country remains relatively less
developed.

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