unit-3-growth-and-structural-change

Unit-3 Growth and Structural Change

In this unit, we shall examine the theoretical and empirical evidence that explains the process of economic development by way of a certain pattern of structural change.

How does Lewis explain the central problem in the theory of economic development?




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Learning Pundits Content Team

Written on Jun 26, 2019 1:22:04 PM

As W. Arthur Lewis (1957) wrote, ‘the central problem in the theory of economic development is to understand the process by which a community which was previously saving and investing 4 or 5 percent of its national income or less, converts itself into an economy where voluntary saving is running at about 12 to 15 percent of national income or more’. Thus, according to development theory in general, ‘savings is the engine of growth’.