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ARTHUR LEWIS's CONTRIBUTION TO DEVELOPMENT THINKING AND POLICY

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  • GUSTAV RANIS

Abstract

Arthur Lewis's seminal 1954 paper and its emphasis on dualism appeared at a time when neither the work of Keynes and Harrod–Domar nor the later neoclassical production function of Solow seemed relevant for developing countries. As a consequence, his model, rooted in the classical tradition, plus its many extensions, generated an extensive literature at the center of development theory. The approach also encountered increasingly strong criticism, some of the ‘red herring’ variety. Some, spearheaded by neoclassical microeconomists like Rosenzweig, raised serious challenges and focused especially on its labor market assumptions. This paper reviews this landscape and asks what theoretical or policy relevance the Lewis model retains for today's developing countries.

Suggested Citation

  • Gustav Ranis, 2004. "ARTHUR LEWIS's CONTRIBUTION TO DEVELOPMENT THINKING AND POLICY," Manchester School, University of Manchester, vol. 72(6), pages 712-723, December.
    • Handle: RePEc:bla:manchs:v:72:y:2004:i:6:p:712-723
    DOI: 10.1111/j.1467-9957.2004.00431.x
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    References listed on IDEAS

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    1. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    2. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
    3. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    4. Amartya K. Sen, 1966. "Peasants and Dualism with or without Surplus Labor," Journal of Political Economy, University of Chicago Press, vol. 74(5), pages 425-425.
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    Cited by:

    1. Marktanner Marcus & Makdisi Samir, 2008. "Development against All Odds? The Case of Lebanon," Review of Middle East Economics and Finance, De Gruyter, vol. 4(3), pages 101-133, September.
    2. John Knight, 2021. "A Tale of Two Countries and Two Stages: South Africa, China and the Lewis Model," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 143-172, June.
    3. Golley, Jane & Meng, Xin, 2011. "Has China run out of surplus labour?," China Economic Review, Elsevier, vol. 22(4), pages 555-572.
    4. Paul Mosley, 2004. "Institutions And Politics In A Lewis‐Type Growth Model," Manchester School, University of Manchester, vol. 72(6), pages 751-773, December.
    5. Yoichi MINE, 2006. "The Political Element In The Works Of W. Arthur Lewis: The 1954 Lewis Model And African Development," The Developing Economies, Institute of Developing Economies, vol. 44(3), pages 329-355, September.
    6. Dempster, Gregory M. & Isaacs, Justin P., 2014. "Structural change in the U.S. economy: 1850–1900," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 112-123.
    7. Sneha Sharad Pawar, 2018. "Trajectory of Manufacturing Industry in India since Post Reform Period," International Journal of Social Science Studies, Redfame publishing, vol. 6(8), pages 54-66, August.
    8. Prema†chandra Athukorala & Zheng Wei, 2018. "Economic Transition And Labour Market Dynamics In China: An Interpretative Survey Of The €˜Turning Point’ Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 420-439, April.
    9. Sonja S. Teelucksingh & Paulo A.L.D. Nunes, 2010. "Biodiversity Valuation in Developing Countries: A Focus on Small Island Developing States (SIDS)," Working Papers 2010.111, Fondazione Eni Enrico Mattei.
    10. Nazrul Islam & Kazuhiko Yokota, 2008. "Lewis Growth Model and China's Industrialization," Asian Economic Journal, East Asian Economic Association, vol. 22(4), pages 359-396, December.
    11. Géza Rippel, 2017. "China – Rebalancing and Sustainable Convergence," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 16(Sepcial I), pages 50-72.
    12. Wu, Fangwei & Zhang, Deyuan & Zhang, Jinghua, 2008. "Unequal education, poverty and low growth--A theoretical framework for rural education of China," Economics of Education Review, Elsevier, vol. 27(3), pages 308-318, June.
    13. Somchai Jitsuchon, 2014. "Income Inequality, Poverty And Labor Migration In Thailand," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(01), pages 1-16.
    14. Chen, Dongxu & Yang, Zhongzhen, 2018. "Systematic optimization of port clusters along the Maritime Silk Road in the context of industry transfer and production capacity constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 174-189.
    15. Diane Coffey & John Papp & Dean Spears, 2015. "Short-Term Labor Migration from Rural North India: Evidence from New Survey Data," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(3), pages 361-380, June.
    16. Prema-chandra Athukorala & Zheng Wei, 2015. "Economic Transition and Labour Market Dynamics in China: An Interpretative Survey of the ‘Turning Point’ Debate," Departmental Working Papers 2015-06, The Australian National University, Arndt-Corden Department of Economics.

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