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

Calculate potential gross income, (a)  Assume that Purchase Price is equal ...

(a)  Assume that Purchase Price is equal to initial Market Value (b) Your Market Rent starts at the indicated level and increases by this factor for all of Year 2 and for each y

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

Define the planned or command economy system, Define the planned or command...

Define the planned or command economy system. Planned or command economy: Resources are owned through the state. The state assigns resources, and sets production goals a

Acknowledge & report for the market for education, Task You work for a...

Task You work for a government of a European country that is considering making admission to museums of your country free to make them available to everybody. You have deci

What are the advantages of informal economy, What are the advantages of inf...

What are the advantages of informal economy? Advantages of the informal sector: • Employment, opportunities and income. • Offers cheap inputs for the formal sector •

Price elasticity of demand, Aska) Explain why each of the following factors...

Aska) 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 c

The effectiveness of the floating exchange rate model, QUESTION (a) Dif...

QUESTION (a) Differentiate between the fixed and floating exchange rate models. (b) Discuss the effectiveness of the floating exchange rate model. (c) Explain the mechani

Unemployment rate, In 2007, Segolene Royal, in an unsuccessful bid for pres...

In 2007, Segolene Royal, in an unsuccessful bid for president of France, says that employees who lost their jobs would obtain unemployment payments equivalent to 90% of the previou

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