The Relevance of the Concept of Cumulative Causation: Understanding Growth Trajectories in Sub-Saharan Africa

Differences in growth trajectories among countries - including the possibility of divergence -, are a central issue in economics. Mainstream economics explain growth processes via varieties of neoclassical models, even improved with concepts such as institutions. Yet such models have difficulties in providing accurate accounts of the growth trajectories of many developing countries, notably low-income ones. It is argued that the growth paths of low-income countries are more appropriately explained by the theoretical framework that relies on the nexus of concepts of cumulative causation, non-linearities, threshold effects, self-reinforcing processes, irreversibility, path dependence and traps - though this approach remains marginal in mainstream economic analyses of growth and development. Firstly, this nexus of concepts is a powerful framework concerning the possibility and explanation of dynamic divergence regarding growth between countries, as it exhibits properties such as: the possibility of cumulative, dynamically self-reinforcing, processes; the existence of thresholds and tipping points; multiple equilibria. Secondly, cumulative causation, by definition, involves a combination of causes: its conceptual framework allows for the integration of several dimensions - economic, political, social, cognitive -, whose combination results in either virtuous or vicious circles. In developing countries, these causes (and their coalescence) typically consist in economic structures (e.g., commodity-based export markets), political institutions and social norms (predatory regimes, high inequality) as well as types of public policies.