Myrdal's Cumulative Causation Model

Flowchart nodes

• 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