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

Less developed countries economies grow by primary sector, Can less develop...

Can less developed countries economies grow by developing its primary sector as agriculture? Less developed countries economies can grow by developing its primary sector as ag

Decentrilization, how to decentralization aids in citizen mobility

how to decentralization aids in citizen mobility

What are the similarities among the developing economies, What are the simi...

What are the similarities among the developing economies? Common characteristics of LDCs (Less Developed Countries) include: • Low living standards (that is low real income

What is the infant industry argument, What is the Infant Industry argument?...

What is the Infant Industry argument? Several governments seek to protect involving industries by premature competition. Infant industries have potential comparative benefit b

What is success effectiveness of multi-national companies, What is the succ...

What is the success effectiveness of multi-national companies (transnationals) in the promotion of development? TNC FDI success into promoting development: • Introduces mode

How can trade liberalisation mean eliminating barriers, How can trade Liber...

How can trade Liberalisation mean eliminating barriers? Trade liberalisation is the removal of trade restrictions for example tariffs, quotas and non-trade barriers is unsynch

Gross domestic production, Explain the statement "during the second quarter...

Explain the statement "during the second quarter of 2010 Irish gross domestic product fell by 1.2%. According to given statement Ireland's gross domestic production fell down i

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