Cumulative Causation Influence on the Divergence of Regions Cover Image

Kumuliatyvinio priežastingumo įtaka regionų divergencijai
Cumulative Causation Influence on the Divergence of Regions

Author(s): Mindaugas Butkus, Kristina Matuzevičiūtė
Subject(s): Social Sciences
Published by: VšĮ Šiaulių universiteto leidykla
Keywords: Divergence of regions; uneven territorial development; cumulative causation process.

Summary/Abstract: The goal of the article – using theory of cumulative causation identificate factors which have determined uneven development of Lithuania regions and also to adduce economical arguments for suggested strategy to defuse tendencies of the divergence. The conspired situation determines bigger investment in education return in economically stronger regions. So that is why on purpose to surmount the relations of cumulative causation there is needed interruption of the government. The government has to finance and stimulate investments into education of the labour force. Economists R. Nelson and E. Phelps indicate that lack of education explains why some regions are able to use the economical development potential, to use the comparative advantage of input factors, because low qualification of employees and lack of human capital determine non effective producing and economical loss.

  • Issue Year: 2005
  • Issue No: 5
  • Page Range: 61-67
  • Page Count: 7
  • Language: Lithuanian