Myrdal's Theory of Cumulative Causation
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The aim of this paper is to give a rightful place to Myrdal's theory of cumulative causation (CC theory) both in his own economics and in the history of economic thought. Myrdal's CC theory is pivotal to clarify the overall picture of his economics. Basing on his methodology of “explicit value premises”, he built it. He recognized the “virtuous circle” in developed countries, and the “vicious circle” in underdeveloped countries. Following his value premises, he insisted the necessity of “welfare world”. With respect to Myrdal, it is important to distinguish between three origins and currents of CC theory: Young-Kaldor's CC theory, Veblen's institutional one, and Wicksell's monetary one. Although it is often said that Kaldor's CC theory is the apotheosis of its history, Myrdal's CC theory is reevaluated through the comparison with Kaldor's in this paper. Our view is as follows. Though Myrdal's CC theory started in Wicksellian monetary theory, it came to have a unique theoretical character between the two currents of Young-Kaldor's and Veblen's.
- Evolutionary and Institutional Economics Review
Evolutionary and Institutional Economics Review 3(2), 275-283, 2007
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