JOYCE PANTE

EIRAH RAYMUNDO

Structural
Change Theory

Digital Advertising
Approach
 STRUCTURAL CHANGE THEORY
Structural
Change
Theory
Structural Change Theory
refers to the shift or
change in the basic ways a
market acts or functions,
representing the entirety
of the economy itself.
 Structural
Change Models

Lewis Model
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Patterns of
Development
 Lewis Model
Lewis model, initially known as
the Dual-Sector Model, was
enumerated by W. Arthur Lewis
in his article titled "Economic
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Development with Unlimited

Supplies of Labor" in 1954
The Dual- Sector Model
explains the growth of
developing countries or
economies in terms of labor
transition. The movement of
labor takes place between
two sectors in which Lewis
claimed to exist in an

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economy. These sectors are
known as Subsistence and
Industrial Sector
EXPLORATORY
MEETINGS

Subsistence Sector of Economy

A subsistence economy, commonly
known as traditional or agricultural
sector of the economy, is where
basic needs of the people are
fulfilled and met through acquisition
and utilization of natural resources
available on local level.
 INDUSTRIAL
SECTOR

Industrial sector of an
economy usually receives
end products from the
traditional sector and
consequently transforms it
to a finished good catering
the wide range of demand
of the market
 1. THERE IS
SURPLUS LABOR
IN THE

Assumptions
SUBSISTENCE
ECONOMY.

of the Lewis
Model 2. SAVINGS FOR
INVESTMENT ARE
CONSTANT.
 Patterns of
Development
The patterns-of-development
analysis of structural change
focuses on the sequential process
through which the economic,
industrial, and institutional
structure of an underdeveloped
economy is transformed over time
to permit new industries to
replace traditional agriculture as
the engine of economic growth.
 TRANSFORMATION OF
PRODUCTION FROM
AGRICULTURAL TO INDUSTRIAL

Chenery’s PRODUCTION
CHANGING COMPOSITION OF THE
model adopts CONSUMER DEMAND FROM
EMPHASIS ON FOOD COMMODITIES
four main AND OTHER CONSUMABLES TO
DESIRE MULTIPLE MANUFACTURED
strategies to GOODS AND SERVICES

achieve INTERNATIONAL TRADE;

CREATING A MARKET FOR ITS

economic EXPORT

growth
USING RESOURCES AS WELL AS
CHANGES IN SOCIO-ECONOMIC
FACTORS AS THE DISTRIBUTION OF
THE COUNTRY’S POPULATION