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4.3.3 Industrialisation: The Lewis Model (Edexcel A-Level Economics Teaching PowerPoint)


Last updated 19 Oct 2023

This Edexcel teaching powerpoint covers Industrialisation: The Lewis Model

The Lewis Model, developed by economist W. Arthur Lewis in 1954, describes a two-sector economy where there is a surplus of labour in the traditional, low-productivity sector and a shortage of labour in the modern, high-productivity sector. In this model, the movement of labour from the traditional sector to the modern sector is what drives economic growth and development. The model predicts that as the economy grows, wages will rise in the modern sector, leading to an increase in consumption and investment, and eventually, a higher standard of living for everyone. The Lewis model has been widely used to explain the economic growth patterns of many developing countries, especially those with a large agricultural sector.

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