1. The Lewis Model of Development
... ). So labor transfer is accompanied by lost food production. However, before the surplus of labor is exhausted, the increase in earnings in the subsistence sector may occur and affect the expansion of the capitalist sector. Lewis explains this with the terms of trade between the two sectors on the assumption that they are producing and exchanging different things. Firstly, the change of absolute numbers of population by labor transfer will lead ... to the two situations: One is due to the reduction of the absolute number of people ... ...
- Word Count: 4558
- Approx Pages: 18
- Has Bibliography
- Grade Level: Undergraduate