Mydral's Model of Cumulative Causation

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Mind Map on Mydral's Model of Cumulative Causation, created by Sarah Mather on 06/16/2013.
Sarah Mather
Mind Map by Sarah Mather, updated more than 1 year ago
Sarah Mather
Created by Sarah Mather almost 12 years ago
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Resource summary

Mydral's Model of Cumulative Causation
  1. 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.
      1. 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
        1. Creates more jobs
          1. Also increases purchasing power
        2. Improved pool of trained labour
          1. Increases the demand for public services e.g. schools, healthcare and shops etc.
          2. Influx of population e.g. immigration
            1. Greater wealth of local people
            2. Increased income from taxes and more people
              1. Increases spending power available.
              2. New construction activity
                1. Growth of teritary sector
                2. Area becomes a growth pole
                  1. Results in new invention and innovation
                  2. Attractions of linked industry
                    1. Backward linkagges to firms supplying raw materials
                      1. Forward linkages to firms further processing the product.
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