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MYRDAL’S MODEL OF CUMULATIVE CAUSATION AND SPATIAL INTERACTION
KAT AND SIMON
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MYRDAL’S BELIEFS
Over time, economic forces increase regional inequalities rather than reduce them.
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COMPARATIVE ADVANTAGES
Location
Natural Resources
Labor
Improvements in Infrastructure
Skilled Workforce
Increased tax revenues
ACQUIRED ADVANTAGES
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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
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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