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

Business Economics, (a) Explain why each of the following factors may influ...

(a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the comm

What are economic sectors, What are economic sectors? For the function...

What are economic sectors? For the functions of analysis the production of goods and services can be classified in four groupings as given below: a. Primary sector b. Se

Money and banking, First, explain the concepts of income, wealth and money ...

First, explain the concepts of income, wealth and money and show how each is related to the other. Next, explain the concept of the monetary base and indicate its economic signific

How does structural adjustment programmes assist development, How does Stru...

How does Structural Adjustment Programmes/Poverty Reduction Strategies assist development? Structural Adjustment Programmes (SAPs) /Poverty Reduction Strategies (PRS) are an ef

BIA Plan, Select an organization and discuss what type of information shoul...

Select an organization and discuss what type of information should be protected in a BIA plan. How would you ensure protection of the confidentiality of such information and preven

Does economic growth automatically reduce poverty, Does economic growth aut...

Does economic growth automatically reduce poverty? Growth implies more goods and services are obtainable to satisfy more wants and requirements. But the benefits of growth may

Pricing strategy, You own a small retail business that produces a product t...

You own a small retail business that produces a product that is slightly different from that of your many competitors. Your firm is currently making an economic profit. The absolut

Test review question, greg and todd form a partnership and start a business...

greg and todd form a partnership and start a business in which each has a 50 percent share of the profit. after a year, the firm goes bankrupt and has debts of $20,000. greg has no

Mark-up pricing policy, Problem 1 Describe the methods of environmental...

Problem 1 Describe the methods of environmental analysis-SWOT, PEST. Strength, Weakness, Opportunity, Threat Political, Economic, Social, Technological Environment

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