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

What is meant by the term the triple constraint, What is meant by the term ...

What is meant by the term the triple constraint? What are the three elements of the triple constraint and why is an understanding of their relative weight significant in exercising

How does foreign direct investment help development, How does foreign direc...

How does foreign direct investment (FDI) help development? Foreign direct investment (FDI) shows an injection of resources in the economy. When those resources are used to rai

.EXTERNAL ENVIRONMENTAL analysis, Explain for each of the sub-variables the...

Explain for each of the sub-variables the positive or negative implications the environmental factor could have on the cereal category in economis aspects

Monopoly union model, Problem 1: (a) In what specific ways does Becker'...

Problem 1: (a) In what specific ways does Becker's model of the allocation of time differ from the simple work-leisure choice model? (b) Compare and contrast the functioning

Explain the mechanisms of the equity price channels, QUESTION (a) Compa...

QUESTION (a) Compare and contrast the two major transmission channels that characterizes the credit view. (b) Discuss which asset price channel of transmission of monetary p

Establish a network of contacts in the is organisation, Why is it significa...

Why is it significant for the project manager to establish a network of contacts in the IS organisation and also in the user organisation? In what conditions can these networks be

Supply, abnormal supply curve

abnormal supply curve

Analysis on business debt, 1.Randy Johnson made a decision to foryo college...

1.Randy Johnson made a decision to foryo college to worki in the family business/How sure was he that was his right thing to do to work for family? 2 Hal began discussing about

Theories of absolute and comparative advantage of trade, Question 1: (a...

Question 1: (a) Clearly distinguish between the theories of Absolute and Comparative advantage of trade. (b) According to you, can the ‘Factor Endowment Theory' be a reaso

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