Myrdal's Cumulative Causation Model

Introduction of a new industry or the expansion of an existing firm

Creates more jobs especially in construction and infrastructure, increased purchasing power

Attraction of linked industries, including maintenance

Backward linkages

Forward linkages

Improved pool of trained labour

Increased demand for services (shops, schools, hospitals, etc.)

Increased population (in-migration) greater local wealth

Increased income from rates and more people increases the spending power available

Area becomes a growth pole

Invention and innovation