Answer to Question #137754 in Microeconomics for c

Question

Explain the essential distinctions among the stages-of-growth theory of development, the structural-change models of Lewis and Chenery, and the theory of international dependence in both its neo-Marxist and false-paradigm conceptualizations. Which model do you think provides the best explanation of the situation in most developing nations? Explain your answer?

Answer 1

Rostow's model summarises economic growth of countries into five different stages: traditional society, preconditions for take off, take off,

drive to maturity, and age of high mass consumption.

The Lewis model, also known as the two sector model, and the surplus labour model, it focused on the need for countries to transform their structures, away from agriculture, with low productivity of labour, towards industrial activity, with a high productivity of labour.

Chenery's model defines economic development as a set of interrelated changes in the structure of an underdeveloped economy that are required for its transformation from an agricultural economy into an industrial economy for continued growth in addition to accumulation of capital both human and physical.

Dependency theory attempts to explain the present underdeveloped state of many nations in the world by examining the patterns of interactions among nations and by arguing that inequality among nations is an intrinsic part of those interactions.

All these models explain the situation in most developing nations, but they try to analyze different aspects of economic developmentof such countries.