Kaldorian cumulative causation

E210004

Kaldorian cumulative causation is an economic theory proposing that growth and industrial development are driven by self-reinforcing feedback loops, where initial advantages in productivity, demand, or exports lead to further gains and regional divergence.

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Statements (50)

Predicate Object
instanceOf economic theory
growth theory
post-Keynesian theory
assumes export performance affects growth
increasing returns in the industrial sector
non-linear growth dynamics
productivity growth is endogenous to demand
basedOnWorkOf Nicholas Kaldor
contrastsWith convergence hypothesis
neoclassical growth theory
critiques assumption of automatic market convergence
emphasizes circular and cumulative causation
demand-led growth
dynamic economies of scale
export-led growth
increasing returns to scale
the interaction between productivity and demand
the role of manufacturing in growth
the role of productivity growth in competitiveness
explains cumulative advantages of early industrializers
divergent growth paths between countries
persistent regional income disparities
field economics
hasCoreIdea economic growth is driven by self-reinforcing feedback loops
growth processes can be path-dependent
initial advantages in productivity or demand can lead to further gains
regional divergence can result from cumulative processes
historicalContext developed in the mid-20th century
involves feedback from competitiveness to exports
feedback from exports to output growth
feedback from output growth to productivity
feedback from productivity to competitiveness
namedAfter Nicholas Kaldor
predicts lock-in of regional advantages
possible divergence between core and periphery regions
relatedTo Kaldor’s stylized facts of economic growth
surface form: Kaldor's growth laws

Kaldor–Verdoorn law
surface form: Verdoorn's law

circular cumulative causation
new economic geography
post-Keynesian growth models
regional growth theory
subfield macroeconomics
regional economics
supportsPolicy active industrial policy
export promotion strategies
regional development policies
usedIn development economics
macroeconomic growth analysis
regional economics
structuralist development models

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Referenced by (2)

Full triples — surface form annotated when it differs from this entity's canonical label.

Nicholas Kaldor notableIdea Kaldorian cumulative causation
Gunnar Myrdal knownFor Kaldorian cumulative causation
this entity surface form: theory of cumulative causation