Discussion
Prof. Gunnar Myrdal combines national and international forces to discuss process of economic development on the basis of :
Answer: B
Myrdal's analysis rests on Backwash effects and spread effects.
In Economic Theory and Under-Developed Regions (1957), Gunnar Myrdal set out the theory of circular and cumulative causation. Growth in an already prosperous region or country draws capital, skilled labour and trade away from poorer ones (backwash effects), while also creating some demand and diffusion of technology that benefits them (spread effects). Because backwash effects usually dominate, inequalities between regions and between nations tend to widen unless policy intervenes.
Export and import potential, income inequality and supply and demand forces enter the analysis, but the framework itself is built on backwash and spread effects.
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