The Core-Periphery model (see below) helps explain why some
inner city areas enjoy considerable prosperity, whilst others display all the
signs of urban deprivation and poverty.
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.
Core-Periphery Model Spread Effects
The development of new industry in parts of the inner city
encourage the concentration of further industrial activity via 'cumulative
causation' or multiplier effect as shown in the model below:
Simplified animation to show the development of an industrial
region (after Gunnar Myrdal)
Less accessible inner city areas may experience a backwash effect,
with the little investment that does occur in the inner city becoming
concentrated close to the CBD, widening the poverty-wealth gap. This is
illustrated in the diagram below, a reversal of the core-periphery model.