EC207 Lecture Notes - Lecture 20: Surplus Labour, Demographic Transition, Human Capital
Document Summary
Capital assume. in the modern sector is the engine of growth -industry expansion depends on low wages. Rate of labour transfer and employment creation may not be proportional to rate of modems-sector capital accumulation. Are presented as an illusion of an empirical approach -include the shift in production from agriculture to industry -accumulation of physical and human capital. Focuses on the sequential process through the economic, industrial and institutional structure of an underdeveloped economy is transformed over time to permit new industries to replace traditional agr. as the engine for economic growth. Increased savings and investment are seen by patterns of development analysts as necessary but not sufficient for economic growth. Includes transformation of production and changes in composition of consumer demand, international trade, and resource use as well as changes in socioeconomic factors such as urbanization. Characteristic features of economic development: -shift from agriculture to industrial production -change in consumer demand. Differences in development among countries are ascribed to:
