backwash effect

backwash effect G. Myrdal (1957) argued that economic growth in one area adversely affects the prosperity of another. Wealth and labour move from poorer, peripheral areas to more central regions of economic growth and the industrial production of wealthy regions may well undercut the industrial output of the poorer regions. This draining of wealth and labour together with industrial decline is the backwash, or polarization effect, and is a feature of core–periphery relationships. See spread effect.