PARAICO, SHARRA LEXINE C.

FEBRUARY 12,2015
AR42FA1

Circular

cumulative causation is a theory developed by Gunnar Myrdal a Swedish economist in the year
1956. It is a multi-causal approach where the core variables and their linkages are demarcated.
The process of cumulative causation starts accidentally due to momentum of an early start or just by
chance. The idea behind it is that a change in one form of an institution will lead to successive
changes in other institutions. Cumulative causation is used to prove that market mechanism will not
bring equality between the regions but it will increase the inequalities of regions. This model
combines two different region which tend to keep backward countries in the chaos of cumulative
procedure where poverty becomes its own cause