Evaluation of Myrdal’s model of cumulative causation and spatial interaction
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Transcript of Evaluation of Myrdal’s model of cumulative causation and spatial interaction
MYRDAL’S MODEL OF CUMULATIVE CAUSATION AND SPATIAL INTERACTION
KAT AND SIMON
MYRDAL’S BELIEFS
Over time, economic forces increase regional inequalities rather than reduce them.
COMPARATIVE ADVANTAGES
Location
Natural Resources
Labor
Improvements in Infrastructure
Skilled Workforce
Increased tax revenues
ACQUIRED ADVANTAGES
ANALYSIS
Good: Does not group development status by country
• Looks at areas geographically and more specifically
Good: Measures development by more than 1 factor of production
• Labor • Capital
ANALYSIS
Bad: Doesn’t consider measures taken by certain governments to alleviate economic disparity between regions
Applicable to Chinese Rural-Urban Migration
• Large development disparity between rural areas and cities like Shanghai/Beijing
• Developed areas in China (LEDC) are sporadic
Inapplicable to Poland – UK Migration
• Poland government has realized problem and is enforcing new rules/policies to prevent a stagnation in development• Higher wages• Maternal Leave