* Havred Demoy Model Ly extended ieeynesion bramewosk. However ik consideved +0 vole ob invesiment ¥ixsh ib cveotes income by multipliey ekbect Second ‘k cveotes productive copocity bby incyeasing capite! stock. Thus os long as \nvesiment igs Hheiy yYeol income & output will keer expanding Assumptions _Assumphons | TInitiol bell employ ment jevel income ntey bevence Absence of government Closed economy No log in adjustment between ynvestment pocity Veao and’ tyeation ob productive ce kes = MPS mes 15 constont Copital oulput valio is constant Consiont price level Soving = investment Loboy A copital not substitute , G59 Goo Classical vs Ne Q Uassicol assume diminishing vetutns . HD Axopped ib S UL DDL LDLVOVYYYVUDE HUE UUUue” Scanned with CamScannera O bsective *y He wonted to determine the unique a | ot which tnvestm ent ond in Come musk groo 7 as such tok bull employment level is al maintoined tor longer hime. + >» Horvod model =| Harrodts thyee growth equation gl @ achual growth vote C4) — Shows tyclice| vevalo , G Warvonted growth vale Cow) — ee Warvant € rh ts gyewth inves tment capocity graeth yoke - which induces enough saving AY This At this vote fo match plenned a. employ ea nate capitol yake monu becturew ove willing to carry in veskment Cr at some cose in she pest - © ratuves Gn = labor groath yake Gn) + duckivily growth a@) growth vate Con) labov exo as porential oy. ‘ull Ti 15 called employment yoke ob gxouth - at is ax ded aS wel bare 0 yh muyy . af DA PDBADADDUD DPD PD PP PP canned with CamScannerTATA eee g> Sv Where 56 -— mes Lv ts capita) fe output Natio + The ayven st ts vestarement o& atement nvestment- saving = ex posk i ye BeDaY Ak = Me oo Ow 4 Dy Vv ms Ze . yy undey depriciahor Slav * sv ge Iv-d. Nayeddis _sedonch—qrow ho eq see but acceleration principle xh is nothing Investment. is proportional to the vote oF increase 9 \noome - = =—E—rhD iy income induces merease in stock oF copital- Scanned with CamScanner+ Harrod and growth equation Planned saving \s qve as s23y ust loathe demand for \ovestment of aco 0’ ast ag is oven Ie = Vy x Oy | output vate Vy is warrented copite ae NY os ay Jay This yatio ts dehermined by the technological conditions : ibrium s:ft PPPPP PP? TTT 444444 a En. equ At this tabe *) =e “7 ackuel vat . sfy ment is & equel —_ bo expected ‘eval Sng Res ~ i Gy < Gey S considey 4 een be taste a y i means vV>NY. ae ini ~ capacity \o not Sully ubilize - mene 1S Ss usplus ok ives ert s i ds ond thus invesimoent = wil] S oo . Zurther ball) “There will be no ~~ u bo ynevead & sy such they Ss ers al peromes egvel to gus Creveog When say) Scanned with CamScannerpS Pp Pp sy Pr PP B Be p PP Pf r 2 PP 7 iP WP TP re rs ot W \s oy owing o lowly Oo" n TK GL4y . xhen dy Wy. Ackusl Mome Khon desived gveete ay acity ok the etonomy, Tr yoductive 40 then yo Wy. ; copita & | thus wheye iS Ahoy tage ot mibul Jabor TH will further In cyxeose eka seculey intlation.| : \ ple {rvesrment Bg Ahws Fox knibe edge \ssue x Peosons bor EMIS 97 Tr is becouse basic assumptions ot } { model - { 0 Fixed production bunction | \ ‘ @ Fired soving yvatio ® Fined growth vate ob lobo boven 4 & Policy ‘im plication Seving a Lrrt—~——S imblationary ¢ oY dek\abion avy oP economy . Thus \ up & dau 2S { move demonds — Ss has +0 aikualton cm ele TB COTTTIO Will ' canned with CamScannerOO! Oe eE--|.|]|mrmrttrttrtttttt i _Dioguomolic vepresentslion gah ae 2 5 : % a 4 eB 4 y 5 3 x Demey model 3 _copecity _ettect ob investment > 3 Ineveose in \noome depends Pens D> om stock ob copibal (ow) b capital output ~ Natios = ee ot < > ae > Now 6 t= T ‘ ~ , ) chs bY 2s) 64 Tw OY « ee s 7 rq 6 Pe z foes aemnand eb bech at \nvekme nt Dt lc tee need Guawkh wm ce pacihy oukpub wail) be yealized on\{ ik bhe vise In AD Aue to wise tn yavesimenk iS able bo match mevease in the capacity Based On keynaton fera me OTK Pees aye AE TTT ee Scanned with CamScannerOl Equilibrium demand ebteck of imadmen}t should be equal to capacik 7 ebbect of twvestm ent at = Le 44444 Lr Thus [8 ; PPP PLT. Thus growth ok ‘Wmvestment should be equol te growth oF. oureuk 2 SE. x Role oF automoric \ovest bin Harrod Th wos ascumed thal 4w doe not Bur +Ws might not be lorrect Se aay apuvina recession seni wake drops & hence qGw nee Tm vecessian weveyse happens happen teots Chonge wm One wor +o share. In vecesston yy & Wages probit a} wages , Begs shere will au, wily constant Uncxeage ©, thus ball 19 AAA MAIIALIT I DD VD "a Scanned with CamScanne!PA eae Sena STE EET EED fr \ ¢ Solow - Swon Solution to knike edge problem Tt capital grows Sasher than lobo i¢ Gw> Gy. breg +h ere— “pill be sesesstonay Aemdoncies - \eith_conshool —eupe2aesguatiF Seoxe—aitt—~ ¢ Then *here will be Scorce Jobor. Technolo g imnovation wil teks Ploee in \obor saving technology: te wil) on as will lower 90 ynrensiv & fechnologis a own case elo ae Labov with be psomot® 4 wl) mcxease Bw. ~ Comparative Study ob Harred Demev similaribies © End wvesult (equally ob saney & wveshmen} bulbil's Condition oF equillleriuy ys Same oivberency omar model is based on ONS grout wate. Harved model on *nree™ @ Domor .- Reciprocal capital ouk put yakio Wavyod capitol output arid + Scanned with CamScanner@ Harrod 4Ses ace levatoy principle. Do moY does nor meniton ee @ & Significance bor developing coun}vies | In developin countries 9a P3w. Population ryote is Wah & saving make iS low th creates @ Chyonic enemploy ment . @ “Enblationory situation , To covvech if. @s*s saving Yobe . ®O Reduce capital ouput Yatio by Aabor inhensive peel © Reduce population greeth vohbie. & Limibobions of node) @ Fell em Ployment is wot Shel in developing Coumriries . © capital ovbput vabio kel to chang ¢ © « might change in tong von. , @ “Ln reality labo & copikal ove Subslitute @ Addresses ‘involuntow 7 unemployment & not structural. © Assumpaion oF bem no government intervention ts invalid Scanned with CamScannerUe bb Ubud bd dvdevvuyy ees © = © - ® Mahalnobis model Assumplions Q Closed etonom 4 @ Two sectors (onsumer goeda ce capital goody | ® von shikability of copibe | @® Tnestment deteymmed by supply ob Capita! goods . QA Cai capacity predvch on. Model Basis bov and FYP Aerie pro portion ot |e te he cin consumer goods sectov 4e- capitol goods eee ee Let B, & Be be capital outpub Core) ne capital ares Q Cons artsy goods seckor . a eh betel PY aductiviky is worithen oy et a, ds Pe % Ke t to They Bs By Met Fe fe Scanned with CamScanneryor Teac yt a Byte THe) we Tee) ct Pe fe THO) s\mil ord Tyee cil tweedy bea Ple Ko SD Ths Ye = Bete Tyr t Pete Try J demon b Mahsine bis Tlahalnebis devived 4o sechor eee kyor DPomov model, @ Both used concep @ Both sata investment inwvea sed BY yarsing mrs ok tiene oe con be & Scanned with CamScanne!‘ * Economic development VS Econo mic 4 tour ie bs Maddison = Raising income | mm aeveloped level in pevcloped country | country | Ss undey 7 Hit) Development oF unused Guvowth ab developed Vesourvces Resouyl(ey honges 1 BPP oll e output xechnical & inskitul ono! Move ou 8 eerie us by whith Ab ig Aish vibabed eer iompvekive Ppyotes. ; Exicdmen = Tnmeve™ e Expansion oF Aver \eads to soctel . 7 Ane system | ghtucrurel Lrans bore ation 6 Ce da WITT ta hive chow, quolitotine chemg.e Musm ‘a d Ee Measurement of economic develo pment @ anP @© «oP ® ane / capita © weibare @ huwen clevelop ment @ Tneease 1 produchiviky @O Tneveosed Uvbanizakion Thternabionel Slouwd of goods & capibat A CR Scanned with CamScanner>* Weltare Limitations we yadivid dol (0) Assigning weight ve dikkevent a | only what 19 produced buk aloe labor ex ploi talon, \s produces 2 eg: cost 1 eke- how eninonmental & Distribution - ® Nelue Gudgen ent vegardin F ourpuk ) distri bution , Composition © Aoste 1 eb ¢ \ncome Socie| indicators ave obten vebevred Ahe basic heed boy development. 4 do as Basic need bows OP alleniation oF ' | povevty by providing Piste, weeds te { Poor. 4 The direct provision ot needs sych 4 as health , education, hood, watery ( sanitakion, housing atkecks poverty 4 im shovter peried thon Gof grooty ‘ APProach. 4 Basic needs leads +0 Rynev productivity Loin come 19° short cun ' sAwrough Mumon Atevelopmenk , 4 4 < Scanned with CamScannerARH T TTT TTT e ee eee oe Six soctal indicators ob basic needs SIR specie aingicai tie Sp eases Heolth - Libe expectoncy at bi¢th @ Edveation ~ school enrolment vatlo ® Food -~ Colovie supplied EY heod @ Water supply = Atcess bo potoble wotey ® Sanitolien = Access Fo gonitation © Housing Limitation oF basic needs @ WUnanimiby among economist ovev Inclusion ob indicators ® Assianing weights to socta\ indieabors @ Indieghors convey cuvveni welbore & not butuve - @ Medovity ob indicakors ave \npud L not output: ' @ Envelve Nalue dudgement > @ 4 achieve this end Eto eee \S meen to Scanned with CamScannerso & Choractervistic 6b on undevdeveloped arhiery O Povert @ fparieulkuve as maim occupation i © aualism- Bristenee oF odvtonced industriel syskem © indeg enous hock werd ¢ agritwituvo) system. @ Under uli Kaed nationo\ yesouvces © Wigh population Orovst © Unem plozmen & disguised unemploymer t @ Low \abor Loebbicienicy © Trsubbiciency ok capitol equi pments Q Technalagi co) backwordues 5 49 x Obskocles to economic develo pment —_—eeTs 1] oO Vicious cyele ob pov evhy oO Low product} vity ey) low inwory co cient4 ) low low savin inves} j ment So ee es ®@™ Low skill © Low meqoklation powey in Foret ga, Wade PIPID&IIII]AD ADA DD DDD DDD GH Scanned with CamScanner~ 'Tey Catt iti ee eee ee >. Peas : R ans tor unemple ment in developing Counitis a @ Lock of woge goods_ (vakil & Brohmanand) the disquisedly unemplo7ed people cohen engaged ‘2 etre i have *o supplied with wege goods, will so that newly formed workers co” subsist: Te The wage goods ave nor subbicien availeble then new employmen* can not sustain . Wege goods see Required mognitudc of wage goods L quailable woge good (6) Sen's | _ Quentum: ob employmen® wage goods on bn a County depends upon one hand veal woge wake on orweye, es Mw ra — supply ob woge goods Wo- Real wayes cpiagest Scanned with CamScannerovtpul { TP 4 . 4 " uM ¢ " € oboy exs MP ot labors & He dishinavished between Me oF labovevs- He explained that it is laborers which is 2¢7 ovev wide MP of Yanga © not lab er, Lets “soy a arm needs 40, ™e" days ob work - Inia bamily theve a¥e@ 4 lo days. people Re eoth wilh work tor Anere ore Move numbeY ob People But thon desived. Even ie % people ave semoved output oN Rok abbect. Thus ‘i we bor widey yange mp of laborer I> Lero. LLI III IS DD PD DPPH weal Scanned with CamScanner& Factors of economic. growth Factors Os. Se @ Natural yesovvees _~ Eyceplion Tapen . beter Yuk Reason - Taper used resource) »s \y @ Capitol acumulation _ Watvod model @ Oxgoniization ~ tr Veads to optimum i hUlUwe Ll pro duction in econemie ack ikea Technolo ai col PYOGKESS. - Tapom . Seale ob production 2 division of leber leads to mMervease ™ @O® -s pecialization produchiviky Structure) Changes = ONGN ae Manu —> Service é @ Sociehy — Nalues, Yespeck +o monilkackuring ® Mumon resources Politica) & odministralive backoys SS SAATTIT TTT r b Scanned with CamScanner* Role ot agvieu lure cra) eionomic developmen & © Food to Yopidly growin populetton. @ Pow material +o industrial seckoy . © Wages - goods model @ “Leeprovin 4. welbore oF nural people Food processing Lailied achivins Lewid wmode & Morketoble surplys aiblevence between Johol. 0 vicultur al called 25 i ts att AA ils AM) MY MY MS DED ourpel L subsistence nee tS moykEereble sutplus Th is very wm portant - re ir did vo & mise | demand bor Food, will, inererte kL prices oF food will wise | e 4 fee oe) coy Leapitel accurnles OY wndusdaio\ develo pment ; : @® Movkek ber vmdusdial grods { ( 4 Rover Yesexv e ean ning : Why aan prices ave fept low ? G) Backword bending Supply cory edbeck ot og — Lewd pricey More supply @) To Ioene bik industrial L uvban populedion ® Lewss model . Scanned with CamScannerLEesYEEwE Wy TOUTE x Role of investment in develo ing countries Why do developing & countries use copikel intensive technologies & @ Imported technologies . @ Subsidi eed capital @ Complex lobor lows @ Low laboy produchivity @ Unskilled laleor Em ployment Ns Savings output wag O w) ecu Labo @pital y= Ft) Lets assume Constont oges . a ane mosimun empleo 7m enh Ab Buby Abia @, Bann 5 Thus Mighty empl zmert mani rized \eods fo low cy san in, 4 Al that gwagg are Tt assume : ea ‘8 L prob 4s ‘soned] tonsumed canned with CamScannera a Why does saving tate increases as the x ® ; un} increases? Pex capita ‘ntome ab a CO yi HC Ss © ev capita income vise 's associated with more monctisation & shiinting gubsisience a\so higher . . ob The on base SO Sovings are ) mes wich > MPS: bor! Poot ' l Ancrease Consum prion does nor! increase). abtey PP DD DDD pH cevtain \evel © To maintain consumption tonstan* throughs ous the Nike. *k Em ployment strate gies in develo ply countries @ Growth oviented stralegies | — Mahalnobis, Lewrs , Harrod - Geneyate employment Trough grouth ob capital goods . : Q Wage goods strategy @ Laloor intensive technolay7 singer ry del) @M — Reval public, work strategy Coandekay, Rath, Minos, Bhagqwoti) = Food bot work proqvar -— MWanPeqa ADIIAIAAAIADPE VILL Scanned with CamScannérA buzneb curve kuzne} curve onolyred ebbect ob foo Be diemciee | Oe ca Th used ain Coebbicient +o measvy distribution ob income © aini coe bhiclent percent income * percent population U shaped Cutve As income Mcreases imequol'ty bixst Imereases and *hen decveasts+ VO expioin ris he used the time sevies data boy tadividual countries © cvoss sectional data box veaional inequalities - “EY wes on ampirtcal onclysis . couses Yow inereoss ina inequellits — puolism tndwhrial Ur CL & agri culbural path = Higher ‘weome in UYbON han yura) arto censer_bor decrease in_inust iO _, — Leaistative action by government — Tyickling down cbect = spri-4 ebeech ee Scanned with CamScanneray Coities | 0 Hiskorical dibbevene es feods *o taver Fef Uo shape. Th *hose yowobles are @ntioled Vv shape will disappeor- eg. olin Amevicon | countyied ~ Trvoli date @ Eos} Asion countvi es Trevease in kwur Mise in Uo ctv ‘ncame Gos wel distributed simullrancously yeduced inequolit 7 @ Mewes _— ave to sevvice Seckay intome liberalization ! Yewenek CUINe bh tvode | Enequolity 1 l 1 4 ‘ 1 ON j rode Z { \ibevalizatioa ‘ Envivonmentol Jeuznet Curve q __ _ ; 4 partatie® 7 4 fe ‘ « ° ex copits * ince ms * s * er Scanned with CamScannaisttibuked ‘impact on county J = gnibling gb production Brom vith +o pool counttics . aint pollubion pismcenhivi2e action 4 ok shructurel chong x cheneryis potter 08 QO Accumulatio 4 process = Trvebment doy yevenye — Gdueatio” en o\rocatio? process. @ rescue a He demond ve ok dome) ot production ae rede struck - gs trucku %e — styuckure ap émaggephte. bh dwbtyttere! pisces — lobov allocat!o” & - Urleaniea®! of - demogia Pie bore ih 04 - Income distribution - 4 yancl _eopirtesl Nateetie® @ Payer} analysis — conv wth. lass datq of 40 co untT1 CS © pwusati ‘ a\io = Contitmed 0% 1470 dabs Q Eeyt Asion/ siilonka — % B02 . ; i, o2t) bk Eadia {neguollhy mob betting AWW LUWWU OWE ~~ canned with CamScannerx Myrdal theory ok citwlov causation on three bocks —epends_on_tnves Ser countries © OQ small grou? ob weolth many more extrem poor @® Wealtl4 continues +0 grow L Poot eee Y stegneter ¢ © Market torees Jeads to deepning oF zg inter veg tone! cli bbevences ee F Assumptions Q Mobility ok bockers Spread_ebbect “Eh ig enponsionory momen kum trom Centers OF. etonomic expansion to other regions » (6) Intveased demond bor ogi product material in progressive & vow vegion . Qe Extension of technology bo logging vegion Hs Bs a a a 2a © Piseronomies ot scale In tHe prospevous YE, jon yesulting in the disper Sal o® achvity Te reduces inequevh es TEAL GS scanned wit : canned with CamScanner} & Beckwash ebbect ets GO Gce) oe emanating brom the pros pevous ve gion which discourages growth in the legging area + @ Increased demand bot the compoved +o agviculturel goods outmigra Hon industrial goods @ Broin dyain®4ue—re tumulative cousatoo Peaion of economic development 5 torks process ob tumulabive cousa ti on Vv cenwipete\ orcas begin to operate y capital & laber attracted + prosperity ot center at ost ok the evipher roe ee y puttipliey ebbect thaw ob reacton produces aelb sustaining growth While oppossibt happens ror THE periphe™ - x Gauvavis Motes Need bo be supplemented (LHIHA AI AIT IIIS SILT TT Scanned with CamScannerx Levis theory of unlimited supplies vb laboy ] ri Assuraptions @ Two sector dual etonomy: A yiulture 1s primitive havi ina. disguised unemploy ME Industry is modevo . ot for AL = S 2 7s S @ Agri cultural settor has diminishing veturr > Hu suriplus 4A » of Joboy in agri ® CG) yes ay age er seciov sexs mark up. wages 19 ane = a. EC rts—s—ses—Se ensurves even asl when evnploy ment te industri el seckey go goss up weges dont ae up. =, @® AN wogesy OVE consumed L all rokits & P — ave saved L invested . Se @ Mobility ob lebor, os ® Wages ya industrsal sechoy ave hig her mH +hon subsist nee Wages due te on @ To athak worlerv. = Os cological ‘Impact ob leaving ms ods a home . +0 3014 = ind V7 St when lobo Yemoved trom ag, Sort Aveyane groduch & ths veal aa Pe wiome vise, agricul tune , Scanned with CamScannerSST ee eee eee eeee® w PANS me WwW i Tt @ > 2 th Ne Ny ara ° OS yeprvesents subsistenk Wagey ob ow capttalut og ees OW) wages supply ot labor is unlimited . Lets soy initially vaavginal produckiviky cure is @ilis Thus Ny tebor coil) be evnployerd Lo awa: woges ool be paid . Permoining produch PiWwa, will be surplus. _— alist. When this wrav gine | product conve veil surplus & amployr bebove , “THs also. Be more is reinvested probit shibt to Poles Capitalist ent will be largey thon further 7 e- investment would ts fechnice! pYegress . Once tHeve ineveases te fends to ‘Meveose prosit &. employment An the capitalist sector. Scanned with CamScannerEnd ot axowth process Sk 3 S As 4 yesult of youth in industrio! Jabor will yernain in ae Now beth wicu)Fure & jobor. oe an debined sector Wo surplus aovitultutal sector \mdustry vill compete bor sn dustry le said | to poke ob stoaie is Ar this jpoinh hend oF ot A Vy Appainah obs emi Sh A Th _ Open economy @ Toosi bh iit be mass tem ieatig rahi on © Export o capitol f 1POPPP—IA ADS Oe Lfon anumy le ty covld lead to capital How ev ey = @ Wode umiens L, tecols al oppose mass = imemieprayion oa @ Copital export has no debimbkeaness = " = Tr will veduce eae &, ok Wworkeys are "Consuming = cheap imeorre| ~ | te = &* SS St st st Scanned with CamScannerx Critical Appraisal O rewis assumed endless demand bor which prevents tall tal) in pita in todoy'5 economy not case assumed ‘constant . Woge continue @ Woy yates ave apis is upreclistic- in capitalist ge chor abter 4 to. Vise dime- @®. stied et considered O85 fempovory bolileneck ae ——- a yemoved prow! "J eae facilities > ee proces s possibility aagvic sector . sector Gro supply ob Lb suprly L thay wee Jeod +o Fall Lewis did not consi dered ob chonges in ul\burval pitelist When ca n must vise. vood gral not vise This ell ihe, own veel. does pe \ees will increase ok model 69 not so easy & @ Mobility ob levee brichionless. ” 6 Vow intome gyouP p\g eere obec, in undevdevelop ed countries ich grvovP & poey qa seve Consume ™meve more « AL Wht SUES Ed ddd ddd EETUUE Se © S$ ey Scanned with CamScannerwe Fei Raniss Theory es Stager S242" Labor This model is im prove ment over Lewis model: 4 > Assumptions 4 4 oO dual economy @ lend ig bixed im Supply 4 @ When MP ob Jaboy is 2eYO, labor € con be Honskeryed brom vi to € Industry w Ithouk ony loss 19 agvicolluree @) Peo) wages in iadusty tel 3 ecto yemains c tired Eis equal te \abkia) veal income & in agti séckov. € Model = ; ' : = Tr exrploincd ow Ihe increase In the & productivi + tn the agri seck or Would e become helpkul ia promoting \ndusbial = seckov. Ft presents dnyee stages aherdy undev developed Countives move brom = stegn ation to selb sustained gyrooth. € av & e u me = e ~ ; Labo < fk " m oe 4 pe | wl Sj 6 “| a canned with CamScan nerYE Ge SSAA a5 | stagel Lt is similer te lewis. In agriculture) Thus Whert is me, is eve be moved seckoy which con Suyp lus Veil oY +o induskry stege 2 =< surplus labor ext b But. it is not eque) Thus at In second stage where APL > MPL - ko he inset fubionel wages Wigher Wages workers are waved berom ae ogy ko industry . we & Eventually Breen te eae! pvoducdivi ty aariculture increase « Fore workers wilt in the arork produc 4 aurpub equal to THC institutional We’ jslnagee fee ob skegg come fe In this staqe an tnd 1b in YWis shege Form seckor i commerci- surplus \aboy tn agri WI end: bawmers are producin altsed Where {aghkubienal wager te7 gel more thon canned with CamScannerx Critical Appraisal zh fs an impyevernent Lewis ir \gnoves developmen} ™ concentyatey exdlusively of industvial sector . The Fei Panis model shows interaction betwee? « an accelerating developmen b . «€ criticism of fe; Ronis € ob Jond is not hired & fhok insitu- over Lewis model - agri sechor & De a tuo sectors Howevey there are @ tn tora yun supply © No emp col evidences Fiona). waged ave obove PIPe \ ge @) Trstitubonel wage not consten = vn aay secho ¥ € © Closed model. To curb agw prices £ vise, rmport ot ogi jooss could be . theve- = = S s e = Le = = oo oo — x oy fer 0, canned with CamScanner% oO ‘\ SSAA SAA To dex Horris model unemplozment ji a\\ manulbackuyiNg in Gace 1 more people YX om eqn Many wares mot mont botkurin emp lors Serr, on Tndian evidences ob Lewis model C kundu & Sarosuiati0aN) ay ibe Hme migvants in Tadig Proportion ho Laat. Bub Noy declined rom 1461 gone up since knen. Proportion ot woman migtonts is highey then men- Ovevoll interstate migi ation declined pre veborms loyt ineveased post ye hormy Tmmigtation 19 Mahaveshtte, Gueveh yneveare dd post sceborms emai g ration syom™ OP > BihOY ineve osed . (oaiciom oF Lewis) er wn wa Doce NP Ow L om Classical” Economist argue frat ib there ts wages wil be posed down te be employed- simlony ir useices ore Vangie would mig reds thus pus ue labor will Anon those fo monubachuwing bo agri Vevel Sis mo But Tedav explained WF he assumed work 7 Tu Wid mode! ifesk 6 SA Crnplorec er, canned with CamScanner= Among those employeecl in the agriculture some who would 4 ho monubachuvi ns But they will a wank bo Wi gvote by wget dibberence . . assess probability bb acting job mawu ackuti ng . i Note Be Ne expectoHons ok getting Jobx in monubeckuring 7 wa they will “wages eels okkevwise not. —_—x - Scanned with CamScani LPRIBIAIMALRMAAMDMAMAM AA AD me mo: attvocted 4 3 2x Bolaneecl Growth The balanced gvowth dectvin@awas base an indivisibilitdes of lemand side Cmin Needed sie Size of movket) & supply sida Due to these indi- ok Marxkeb eeee Clumpiness oF capital] . & tonsequent choneces min investment IS necessary ‘ Visibilitfes Batluve iwhaksisn Wy simultoneous ond Theve should be & dibtevent sechors hayvmontous development } ov’ the economy Ss? nak all sectors gxols in unison - Balonce between supply & dewvard yequived for developmenk . supply _ S is emphosis Oo” simul kaneous development ob inher related sectovy Which help. in increasing SYpply of goods . Demond side Bocus on \mereasin employment j Anus demand boy Consumey & agriculbu ve) goods . imcome & a Ros ens tid - Rodon model @ Obten social marginal product csmP) ok an investment is ditbevent srom its WII d ada privale marainal product . ® When a group ab ‘industries Plan sogerhey \a atrev dance with sherv gm the vate of gvooth is hig he So EL Scanned with CamScanner® For example {ets sey 4% lovge shoe vndusty ; Stovted in 0 Ygion y Lek seq 20k People are employed kheve. Te all those workers spent on shoes morkek Cae Le Crected, , But trouble fs a\) theiy Dt Shoes wil\ Anal workers won't spend Wages on shoes . Insheod series of industries should be Sor be dy aen—tarrith tons ey Which produces consumption goods? Herve Woskey will spent all Wyeivincome & AW Ane industries will! @ypand by the multiplyey ebbeck . , * Nurvkse model AMY MAES 61 100 C6 os According to Nurkse vicious cycle ob poverty ts seen in underdeveloped countries. setialA side debiciency of jeapitel if ; y Me teaiseud| 1 | _ seve om Productivity Coe j incom & Tow income | i Casi Feniad Nea —_——=kxe€ewre0——seanned with CamScanner QILIALIVIPO PO POD DDe demand side inducement to sove Jow CET naaMow to byeok cycle ° subslontiol use ok capital mm not be protitoble due fo orticuley indushy wa by capitalist vi ght smal\ size ok market: on the conor} simultaneous copitel watgied in dibberend indust ies wil) incveast ebbicdency by enloy ging may ket spyough mul fipliey ebbect - use ob jn mong Ste yovs show it linet simultaneovs! = Complementon ok demand bebween sectors | eronem grows __ develop develop ea sire of movker Expands 2 ob size of movket x meterminant ehevminant ob size Ok MOYEN ’ © Advertisement — Tr shibts demand brom one provider bo othev provicley & dos not vaise A? \ ® Money supply Devele pm countries dont hove bul\ capacity vu Aebiciercy ob demon Wee developed countries. Thus iney@ase ty veo ney suppu do not vaises demand bul puts pressure on prices. 4 sei canned with CamScanner6 Population .| Muvkse ovaued agers! layge Populatlon | mean lavg es merkeb.’ © Geogvophicel avea + plurkse alse vebused relation between lavas gcogtephis axvea & larg mov kek > : © Trode Cartern atonal ) ee aergemenal. | Nikse was export pessimist. He shabed Ahal ineveased ede oy bovelgn inv eg tment Wes. ole Straken y Ths success Kmited +o beo countries who were alvea dy high ‘mee me countries Ths use in underdeveloped countries ‘is Mnited . Inkack if creates number ob ptoblems Foxeign wwwestors mia nt covelessly use Yesourcey. Another teeson is export of underdeveloped 1 countries might be limited fo primory ( Aus merkel bor them is limited 4 goods . ©. Rroduebivity sng Nuikse shyegsed ‘thal produckini by is dakevmineid dF maxvkeh. , ocr etve oo aan primary io produchivity incveases, blow of goods ¢ sewices Un the economy As a vesult a2 @ consumplon increasss | Thus unelerdev eloped doundrqes Should dotus on meveasing productivity, Th ¢an : be intveased © simultanegu ‘mvestment Wa dik teven} sethovs. 4 Scanned with camScanneravvvuvvuvvrvw- - * GriMicism of bdonced growth QO Hivsthmen stressed that underdeveloped wunty}es latk vesources , Thus simul toncour Ynvesiment in multiple sectoy js unvealishy due te pausity of Yesources . @ Nurkse theory gives apprevel bo saz's lava. However keynes has proved heb Say's Saw ‘sin applicebl¢ @ Moding to. Nuvkse When demond tov snc demond for other also visey good vise) pods)? Mowever theve (complemen * any axe substitutes os @ At ony qwven aoe | might alveadly exists hors’ alan worsen SS wal moynent imbalance in Investment eronom Wn roulti ple sec imbalance . GQ Auording to singey balanced growth is wore Appi ee to econowny bacing dotarserl eyelical Aovansaaivng Th 1s beahure of advanced etonomy Lo onot undey de veloped econ omy : canned with CamScanner4 Theses ob _unbelaiced granoth selected sectors of the Tavestment should be made 1 Seclorvs thon simultaneously in all Eronemy, . : Hivsch man Shaledy 4 Ntowding to Hitschmen Balanced aren shakey ts uneconomical TH also promoter de not provide ‘art signels » Hirsch moe contended ik Ave “econorny iste Kept moving fhe tosk of , policy should bes fo) Mainbain ais equililriumn . ; ove stavhed , acy, When. New provec ot , he appio priete extevnol economies previous project & Cteakes weid external which Coul economies new . investment . “ Tavestmen} wahich appropriate more ex Fern al economies ther exkeynalities i+ Creahe ave Enown as diver convergent series of vwnrestmen + Divergent serie, ob lh creohes More A be exploited by janiestym ent are those whic exhermeli HT Ox Men tt appreprietes s TIOGTPVIITVYIRMAIPDMAMVAAVRADAD ® @ ® ® om x canned with CamScannerPOGUE UUG EEUU ed ddd AAEIYELOY Th prac hice developmen! policies should aim ot @ prevention ob convergent nvestrnent Q@ Promotion ot divergen invest enk , series a the b sevies ok thE Thus development con joke plote by untelonirg This is possibl < by etthey averhead capital ov ane Yormey the economy. investing in social activi kies . divect| ductive i ean while late apprepriabe creotes externalities a. Unbeloncing econamy with Soc. Set Sodal overhead capital (s0¢) includes investment in enducation , health , Commu- nicolion, vans portation, ele. electricity, water supply ete A \oxve investment in SOC emtourore private Amvyestment latex 19 DPA- For example Cheep supply at eleckyicity encourages establishment of small industries - ubbalncing economy with DPA re \west ment ts directly produchly c ack by taken bivsh, the shortage of SOc s ‘ely ho yvalse production cast, In course oF Mme Aneve alll] be polt beet pressure to stimulabe investment Im soe, canned with CamScannera Path ot development : yi ia Finsh SPAUOM AG gis dexelopment a excess capacity & second oie development via sho thegos~ is O Genes pevelo pment via A-B ee) Gn ce ' oe : Shovbages. evelopment vig A-Ba-B ~C2-—¢ wm exceeds capattty, Hirschmon argue halt Aevelop ment ~via Shovbages will tompel Further way ey tmenk OTA IIDPPAPPTDIIIIIS iohile development Nia cncess eopaci ty merely permits buy they inves tment. His argumenk is Corveck In scenario where Aneve “iS lavge scole “wesistance +o social enans ee; He kavers Scleching prod ects which have maximum batkwerd & Forword linkages. Underdeveloped countries shatd set up last industrfes bith. Cenctave import industries) | Trey create atk word \imtages ob substantiate depth h rapxvyongvg9g99g7 9% Scanned with CamScanner~ Protedkian Ab subsidtaing ob import substituting tater, Otherwise ‘mdustrtes should come ob back Ward County looses advantage) Ainkage.s. Trote: Asri hove lows backword b bovword hinkog es) A Ceikcal appreicel o¢ unbalanced. greet? ys yealisHe L takes into account most lopment. the approach be $ayor in mixed n bovward & Tt ob the aspect of deve ob Hivschmen ‘appeoys bo economy. “the destu discussion © backwora Tinkages is highly usebal in development apprecch: Howevex. news ove some imitakions 6% Anis oppresch - fo falk aboud whey ¢ to @ Xt does m0 imbalence imbalance @ “ts neglects vesistance coused by a how) much to unbalanced grown « ; @ Wis approach is practicable here there is mhevnal . dlexibiliies ob yesouvces. But. in undevdeveloped countries we ois Aibbiculk to Shibt vesourcess byorn ons seckor +2 anothev ; Bus to Shortages in some Sectors , in Blahlonowy pressure Moy vise | Saat, © Ur bocus an\y on inveskment decisions & anoves administrakive , tha nageri ol & cet polic detistons . ‘Scanned with CamScanner& x Dibterence's between balanced & unbalanced gyoates @) Debinitton @ Novkse believes thot balanced avowth ts & Velevank primarily to private enteyp vige <, system. In Hiysehmon otrakegy state twvestment pleys im pov tant vole in decision. . &¥ >= * similarities belween balanced £ unbel anced grodh ee @ Botn believed in exist ence ob private S enterprise system aged an meovkeh Gy Mechanism under hich Hey operete. aS © Both ignored supply limitation & Re sipply jnelasticities | Ee @ Tis orvgqued Anal unbalanced growth Lor strate 1 15 way to achieve balanced Se gyowky . 7] Nation with balanced # Unbsalanced abrabyie P 144 A Reconcs Unbalanced growth is Mean of achiev ivig GS the ultimate obvective af balanced grow, Gre Unbalanced groeth concentrahes: yesources Ore in bew selected atees crea in shorbages ee elsewhere. This con be consistent with et big push version ob balanced youth t= doctvine provided Ane stale ob a investment in the unbalanced arousth is eS f, pvertome the indivis ibilitley y subictent to ane bla push: as emwisag ed ‘19 canned with CamScanner (%OU bbeeewuweuruguvyywy es ~~ ~~ &ATssues with applicetion ob morrginel vule in © Te wil work omy iy prices veblect Sothal marginal (osk which Mey nok be cose due to ‘imperbect meybet L extemaliie @ Marginal vule only optimizes cuvrent wellbore While bor devel ping gounhyi ty balance has to ‘eept betweey cuyveny & fulvre welbore . ® Marginal) rule will anc optimal solution only when dive initial disivibullow yh sxesources Laithin swe economy wos optim oh. Scanned with CamScanner%. Nelsdhis [a ehuillbrion Hap Conclit O bors obs fons conducive bor happing: a elation Bek bely pev capita income popula tion growth & vote @ Scoveiby ok uncultivel le land ® Tne per casita Savin Model © © bhictent methods ob production port” yooh as a ect Ren om Below tveshold there will be dissovi ng. € ft MPs fs Conshonh. Thus « & beyond tho coith per Capiba mecome 6 goving imeveotes Adv incbe Se Vis es Jeet vote bale & e population qouth Yoke Mcreeses untill & decteayey to Wun Og death yore iereors) [at is sz model ~ Thus Ge constont’] e oe a otabi onary & x per capita aeving 12 2410. Sopvoudy wake of national income Will “be TCV, ey les} of i} theve Vs dissaving L & on population is balling Thug national income will be Falling as Lod] —_ 3 ow Scanned with CamScannet