He could have further elaborated his thesis on Verdoorn's law by explicitly taking into account his (Kaldor, 1972) Keynesian elaboration of Young's cumulative causation
In light of this assertion, we have tried to represent in one single model the most relevant implications of this interrelationship, namely the influence of technology in determining the competitive position of countries, the capacity of the foreign constraint to condition the growth rates of countries, and the existence of cumulative causation
mechanisms, which guarantee the continuity of such a growth process within the competitive framework of the 12 countries during the period 1969 to 1994.
This suggests a process of cumulative causation
, in which successive firms entering a location make it a more attractive location to further firms.
There are two processes of cumulative causation
at work in the construction labour market in Goa.
The third is a theory of social change, and one which builds in the principle of circular and cumulative causation
The study of cumulative causation
and consequent concentration of activity has been largely neglected by international economics and by the mainstream economics profession in general, although it has had its proponents (for example, Kaldor, 1972); Myrdal, 1957), and has been important in some sub-fields of the subject (such as economic geography).
Chapter 7 presents various export-led growth models, while Chapter 8 investigates regional problems and cumulative causation
Forty years ago, the great development economists Albert Hirschman and Gunnar Myrdal were writing about circular and cumulative causation
, and about backwash and spread effects.
The ideas of cumulative causation
and the macro-externality of demand have been used by post Keynesian economists |1~ to explain the tempo of economic activity.