Mydral's Model of Cumulative Causation

What?
1. 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.
2. Economically powerful areas have greater access to a larger market and coompanies to benefit the economy on a macro (large scale) level.
Introduction of a new industry
1. Creates more jobs
  1. Also increases purchasing power
Improved pool of trained labour
1. Increases the demand for public services e.g. schools, healthcare and shops etc.
Influx of population e.g. immigration
1. Greater wealth of local people
Increased income from taxes and more people
1. Increases spending power available.
New construction activity
1. Growth of teritary sector
Area becomes a growth pole
1. Results in new invention and innovation
Attractions of linked industry
1. Backward linkagges to firms supplying raw materials
2. Forward linkages to firms further processing the product.

Resource summary

	Created by Sarah Mather about 12 years ago