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How does sectoral change enhance development?
The Lewis Model argues economic growth needs structural change into the economy whereby surplus labour into traditional agricultural sector along with zero marginal products that migrate to the modern industrial sector, here their marginal product is much higher.
The Rostow model classifies a progression through primary orientated production along with low value added to manufacturing and services along with high value added.
Shifting resources through low productivity primary zone to higher productivity sectors increase output and income.
What are the import substitution policies? Import substitution policies are as follows: Need trade restrictions for example, tariffs and quotas to defend infant industr
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Identify the features of informal sector in African countries
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Assume that national income is initially at its equilibrium level when desired investment falls. We would expect an enhance in national income by an amount equal to the decreasing
What are the restrictions of dependency theory? The restrictions of dependency theory: • Self sufficiency and import-substitution strategy mean the advantages of Internatio
constraints
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Problem 1 Discuss how Monetary policy regulates the money supply in an economy through various instruments. A) Explanation of the instruments of monetary policy Problem
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