Industrialization and Structural

Change
Industrialization
• The process by which an economy is
transformed from primarily agricultural to
one based on the manufacturing of goods

Structural Change
• It is a constant process as the economy
adjusts to changes in the pattern of
demand
6.1 Introducton: Industry as a
Leading Sector
 6.2 A Model of Structural Change
• It focuses on the mechanism by which
underdeveloped economies transform
thier domestic economic structures from a
heavy emphasis on traditional subsistence
agriculture to a more modern, more
urbanized and service economy.
6.2.1 What are the Features of this
Model?
6.2.2 Inyroduction of Trade into the
LFR Model
6.3 Backward and Forward
Linkages
6.3.1 Indirect Backward Linkages
6.3.2 Forward Linkages
• It tell us how a product is related as an
input into the production of a product at
next stage.
• A good indication of the extent to which an
economy can upgrade its industrial base
by using its existing expertise and
resource base.