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What are the restrictions of Lewis?
The restrictions of Lewis:
• Assumes complete employment in urban regions. Evidence recommend otherwise
• Raised profits may be invested into labour saving capital quite than taking on newly arrived employees
• For many LDCs (Less Developed Countries), rural urban migration levels have been far larger than the formal industrial sector is capability to give jobs. Urban poverty has replaced rural poverty. Newly arrived rural migrants join the informal economy and live into shantytowns.
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Demand
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