cumulative causation

Cumulative causation is an economic idea suggesting that once a region or industry begins to prosper, that success can build upon itself, leading to even more growth. As a place becomes more successful, it attracts investment, skills, and opportunities, which further boost its development. Conversely, areas that start struggling may experience a downward cycle. This process creates a feedback loop where positive or negative trends reinforce each other over time, shaping the economic landscape and differences in prosperity between regions.