What is the lewis model, Business Economics

Assignment Help:

What is the Lewis Model?

The Lewis Model argues economic growth needs structural change into the economy whereby surplus labour within traditional agricultural sector along with zero marginal product that migrate to the modern industrial sector where their each marginal product is more much higher.

Transferring surplus labour through rural to urban regions has no effect onto agricultural productivity like MP of rural employees = 0. Additional workers within urban areas raise output thus incomes and profits. Further incomes increase demand for domestic products when increased profits fund increased investment. Therefore rural urban migration gives self generating growth.


Related Discussions:- What is the lewis model

Supply, abnormal supply curve

abnormal supply curve

Is structural change a problem, Is structural change a problem? Econom...

Is structural change a problem? Economies are dynamic and adapt to meet evolving consumer wants needs. This means resources are moved from use to use in response to, say, chan

Perfect competition market, what is the short run and long run effects of a...

what is the short run and long run effects of a new idea creating by a restaurateur i.e home cooking services in the perfect competitive market?

Traditional - modern sectors and rural-urban migration, What are the tradit...

What are the traditional, modern sectors and rural-urban migration? Rural-urban migration: Rural-urban migration is the movement of labour through the countryside to cities

T-value associated with 25 degrees of freedom, What is the t-value associat...

What is the t-value associated with 25 degrees of freedom and 20% in the tail? (Please round your answer to 3 decimal places)

Economic problems, what are the economic problems facing any individual in ...

what are the economic problems facing any individual in the economy

Explain the primary competitors of corporation, 1.) Write a concise one-par...

1.) Write a concise one-paragraph summary (no more than ½ a page!) of the corporation. This would include, for example, its products, its industry, its primary competitors, the exc

Total outlay method, total outlay method as a measure of elasticity with ap...

total outlay method as a measure of elasticity with application

Implement intellectual property right, Question: a) Distinguish betwee...

Question: a) Distinguish between the orthodox and the heterodox perspectives for implementing Intellectual Property Rights (IPRs). b) Patenting has been subject to much co

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd