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

Monopolistic Competition, Describe the characteristics of Monopolistic Comp...

Describe the characteristics of Monopolistic Competition

Fixed vs. flexible exchange rate, what is fixed vs.flexible rate of exchang...

what is fixed vs.flexible rate of exchange agreement?

Libralisation, what is increaase libralisation?

what is increaase libralisation?

Economics , analyse the method by which a firm can allocate the given adver...

analyse the method by which a firm can allocate the given advertising budget between different media of advertisement

Why not cancel all third world debt, Why not cancel all third world debt? ...

Why not cancel all third world debt? Two arguments are advanced in opposition to debt cancellation. • Developed countries finance the World Bank which can use its funds to

Identify the e-hr issues, QUESTION Case Study E -HR Strategy: An ...

QUESTION Case Study E -HR Strategy: An Electronic (E) Human Resource (HR) Strategy is attainable by small and medium sized business 1. Introduction This article is

What are implications of sustainability in economic growth, What are the im...

What are the implications of the sustainability in economic growth? Implications of the sustainability in economic growth: Moving in the direction of sustainable development

Analyse the transmission mechanism, Question: (a) State whether the fol...

Question: (a) State whether the following statements are TRUE or FALSE. Justify briefly your answer. (i) Money is the most liquid medium to store value. (ii) An increa

What are rural and urban sectors, What are rural and urban sectors? ...

What are rural and urban sectors? Rural and urban sectors: • Rural sector consider as countryside. 60 to 70 percent of LDC (Less Developed County) population live into r

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