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 are the limits of development theories, What are the limits of develop...

What are the limits of development theories? Theories are generalisations: • When LDCs share similarities, each country is unique economic, cultural, social and historical

The economic cost of a project, Advanced Technology, Inc., (ATI) is evaluat...

Advanced Technology, Inc., (ATI) is evaluating a contract proposal calling for it to build and test bearings using a newly patented surface configuration. ATI would receive $1.4 mi

Type of unemplyment, as a result of 2008 financial crisis, there was loss o...

as a result of 2008 financial crisis, there was loss of construction jobs in us, since home developers stopped building new homes. in your opinion which type of unemplyment is res

Low per capita income, Assume that the per capita income in Alfaland (with ...

Assume that the per capita income in Alfaland (with initial high per capita income) is growing quicker than it is in Betaland (with initial low per capita income). Then: the gap in

What is poor governance, What is poor governance? In countries along wi...

What is poor governance? In countries along with poor governance: • The rule of law has not working for example civil war and areas run by war lord • Bribery and corrupti

Is the balance of payments a problem, Is the balance of payments a problem?...

Is the balance of payments a problem? A persistent balance of payments shortage is bad when used to finance consumption, but good when financing imports of suitable capital wh

Asking process functionality to system under development, As selling is an ...

As selling is an ‘asking process’, how you could use this to assist you sell some further functionality to a system under development? When we use the buying cycle like a guide

Estimate the short-run and long-run elasticities, Consider the following mo...

Consider the following model: Y*i= β 0 X t β 1e U t a)  Using the stock adjustment model, estimate the short-run and long-run elasticities b) Comment on the following pr

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

What are the economies at different stages of development, What are the Eco...

What are the Economies at Different Stages of Development? Economies at Different Stages of Development: • LDCs (Less Developed Countries) share common features but all one

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