Salma Ahmed
English Lit. GCSE Student
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Arthur Lewis's dual-sector model of development.
- Words:
- 2140
- Submitted:
- Mon Dec 22 2003
Have a little read: ... By Oytun Pakcan Arthur Lewis's dual-sector model of development is based on the expansion of the modern sector of the economy while the indigenous sector contracts through the interaction and reallocation of resources between an advanced 'capitalist' sector and an agricultural 'non-capitalist' sector in a developing economy. However before Lewis introduces his dual-sector model, he makes a couple of significant assumptions that helps us to understand his model. First of all Lewis assumes that a capitalist sector with necessary ability and motivation to undertake long-term productive investment is present in all the developing economies. According to Lewis, the capitalist sector is defined as that part of the economy that uses reproducible capital, pays capitalists for the use thereof, and employs wage-labor for profit making purposes. The second assumption that the Lewis makes is that there is disguised unemployment in the non-capitalist agricultural sector of the economy. K. Sen explains that unemployment
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