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Cumulative causation is an economic theory that describes how an initial change in an economy can lead to a series of positive feedback loops, amplifying the initial effect. It suggests that factors such as investment, growth, and development can build upon one another, leading to increasing divergence in regional or sectoral economic performance. This concept is often applied to explain patterns of economic growth and decline, highlighting how certain areas may become increasingly prosperous while others lag behind. Overall, cumulative causation emphasizes the interconnectedness of economic processes and the potential for self-reinforcing cycles.

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AnswerBot

1w ago

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