Dual economy modelSurplus labourThe Lewis dual economy model is widely recognised in development economics for its profound explanatory power and applications in economic development. However, there remain some confusions and ambiguities, especially with respect to the definition of surplus labour and the...
Lewis’s Theory: Sir William Arthur Lewis’s influential essay, ‘Economic Development with Unlimited Supplies of Labor,’ proposed that countries with surplus labor could industrialize by paying wages just high enough to attract workers away from family farms. Key Assumptions: The model assumed that...
but labour ceased to be unlimited in supply, and the formal model of economic analysis was no longer expected to explain the expansion of the system through time. These changes of assumption and of interest served well enough in the European parts of the world, where labour was indeed limited...
butlabourceasedtobeunlimitedinsupply,andtheformalmodelofeconomicanalysiswasnolongerexpectedtoexplaintheexpansionofthesystemthroughtime.ThesechangesofassumptionandofinterestservedwellenoughintheEuropeanpartsoftheworld,wherelabourwasindeedlimitedinsupply,andwhereforthenexthalfcenturyitlookedasifeconomicexpansioncouldindeedbe...
The Lewis dual economy model is widely recognised in development economics for its profound explanatory power and applications in economic development. HoweverWang, XiaobingPiesse, JeniferSocial Science Electronic PublishingWang X, Piesse J. 2009. `Economic Development and Surplus Labour: A Critical ...
Interest in prices and in income distribution survived into the neo-classical era, but labour ceased to be unlimited in supply, and the formal model of economic analysis was no longer expected to explain the expansion of the system through time. These changes of assumption and of interest ...
Assuming a modern capitalist sector in urban centers of the LDCs and a traditional agricultural sector with an unlimited supply of labor in their rural areas, the policy implications of the model was that with the right mix of economic policies and resources, the disguised unemployed labor of ...
butlabourceasedtobeunlimitedinsupply,andtheformalmodelofeconomicanalysiswasnolongerexpectedtoexplaintheexpansionofthesystemthroughtime.ThesechangesofassumptionandofinterestservedwellenoughintheEuropeanpartsoftheworld,wherelabourwasindeedlimitedinsupply,andwhereforthenexthalfcenturyitlookedasifeconomicexpansioncouldindeedbe...
with the relative prices of commodities as a minor bye-product. Interest in prices and in income distribution survived into the neo-classical era, but labour ceased to be unlimited in supply, and the formal model of economic analysis was no longer expected to explain the expansion of the syste...
Lewis set out the dual sector model in his 1954 publication, "Economic Development with Unlimited Supplies of Labor." Lewis' model seeks to provide a framework for understanding how relatively poor countries can develop economically. It begins by assuming that one of the characteristics shared by ...