Principle of Circular and Cumulative Causation: Fusing Myrdalian and Kaldorian Growth and Development Dynamics

Abstract

This paper seeks to promote the development of the principle of circular and cumulative causation (CCC) through integrating social and economic dimensions as applied to historical problems. It starts by examining the similarities and differences between Myrdalian and Kaldorian circular and cumulative causation. It shows that the similarities help link the approaches, while the differences enable complementary specializations. There are core elements in both traditions plus specializations that are complementary. A degree of convergence exists between these traditions of institutional and post Keynesian schools, enhancing the analytical spread of vision of contemporary political economy.

Keywords::

• circular and cumulative causation
• Gunnar Myrdal
• Nicholas Kaldor
• institutional and post Keynesian political economy