cumulative causation theory

Cumulative causation theory explains how economic growth in a region can create a positive feedback loop. When an area develops industry, attracts investment, and improves infrastructure, it tends to draw more businesses and workers, which further boosts growth. This process can lead to regions that continue to prosper while others lag behind. Essentially, initial advantages build upon themselves, making success more likely in already thriving areas, and highlighting how economic development can be self-reinforcing over time.