Cumulative causation revisited in the context of contemporary southeast Queensland economic regoinal development: Congruence or divergence?

The Swedish economist, Gunnar Myrdal, first postulated his Cumulative Causation Theory (CCT) in the mid-1950s. It presented a multi-cause explanation for differential growth and regional development patterns. Within any such region, it predicted the likely emergence of one activity node that would dominate the long-term economic, political and community character of the entire area. In the intervening period, the theory has been widely adopted as a reasonable explanation of growth and development patterns across many western countries. However, given the scale and compounding nature of contemporary change, it is reasonable to reconsider its current relevance and impact. This paper forms part of a wider, continuing study into the development of Australian regions and businesses within rapidly changing environments. That reflects on both Cumulative Causation Theory (CCT) and on the appropriate role of government in such matters into the future. The paper draws on examples from sub-regions within South East Queensland. Although these sub-regions are diverse in physical characteristics and economic structures, this paper observes that key elements of CCT still resonate. It is hoped that this research will assist government in the formation of better targeted regional support into the future.