Mydral's Model of Cumulative Causation

Mydral's Model of Cumulative Causation

1. What?

   • Offered an explanation for why regions with lower levels of development may find it difficult to break out of an unequal relationship with more powerful neighbours.
   • Economically powerful areas have greater access to a larger market and coompanies to benefit the economy on a macro (large scale) level.

2. Introduction of a new industry

   • Creates more jobs
     • Also increases purchasing power

3. Improved pool of trained labour

   • Increases the demand for public services e.g. schools, healthcare and shops etc.

4. Influx of population e.g. immigration

   • Greater wealth of local people

5. Increased income from taxes and more people

   • Increases spending power available.

6. New construction activity

   • Growth of teritary sector

7. Area becomes a growth pole

   • Results in new invention and innovation

8. Attractions of linked industry

   • Backward linkagges to firms supplying raw materials
   • Forward linkages to firms further processing the product.