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Arthur Lewis' Contribution to Development Thinking and Policy

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  • Ranis, Gustav

Abstract

Arthur Lewis' seminal 1954 paper and its emphasis on dualism appeared at a time when neither the work of Keynes or 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, but some, spearheaded by neoclassical microeconomists like Rosenzweig, also raised serious challenges, 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

  • Ranis, Gustav, 2004. "Arthur Lewis' Contribution to Development Thinking and Policy," Center Discussion Papers 28410, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:28410
    DOI: 10.22004/ag.econ.28410
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    References listed on IDEAS

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    1. Rosenzweig, Mark R., 1988. "Labor markets in low-income countries," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 15, pages 713-762, Elsevier.
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    8. Ranis, Gustav & Stewart, Frances, 1999. "V-Goods and the Role of the Urban Informal Sector in Development," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 259-288, January.
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    Cited by:

    1. Ma Jiyue & Huang Fei & Bruhn Aaron, 2021. "Estimating China’s Future Life Insurance Market," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 15(1), pages 1-16, January.
    2. 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.
    3. Fangbin Qiao, 2020. "The Impact of Agricultural Service on Grain Production in China," Sustainability, MDPI, vol. 12(15), pages 1-18, August.
    4. Koustab Majumdar, 2020. "Rural Transformation in India: Deagrarianization and the Transition from a Farming to Non-farming Economy," Journal of Developing Societies, , vol. 36(2), pages 182-205, June.
    5. 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.
    6. 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.
    7. Philippe Adair, 2021. "The informal economy and gender inequalities in North Africa," Erudite Working Paper 2021-07, Erudite.
    8. Haldar, Anasuya & Sethi, Narayan, 2022. "Effect of sectoral foreign aid allocation on growth and structural transformation in sub-Saharan Africa—Analysing the roles of institutional quality and human capital," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 1010-1026.
    9. Golley, Jane & Meng, Xin, 2011. "Has China run out of surplus labour?," China Economic Review, Elsevier, vol. 22(4), pages 555-572.
    10. Beatriz Calzada Olvera, 2014. "The Millennium Development Goals after 2015: A Proposal for 2015-2030," Competence Centre on Money, Trade, Finance and Development 1401, Hochschule fuer Technik und Wirtschaft, Berlin.
    11. 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.
    12. Paul Mosley, 2004. "Institutions And Politics In A Lewis‐Type Growth Model," Manchester School, University of Manchester, vol. 72(6), pages 751-773, December.
    13. 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.
    14. Nicoli Nattrass & Jeremy Seekings, 2018. "Employment and labour productivity in high unemployment countries," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 769-785, September.
    15. 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.
    16. 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.
    17. 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.
    18. Amavilah, Voxi Heinrich, 2014. "Sir W. Arthur Lewis and the Africans: Overlooked Economic Growth Lessons," MPRA Paper 57126, University Library of Munich, Germany.
    19. 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.
    20. 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.
    21. 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.
    22. 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.
    23. 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.
    24. 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.

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