ABSTRACT
The growth models which are examined in Chapter 2 are highly aggregated in the sense that no attempt has been made to distinguish between different sectors of the economy, e.g. agriculture and industry. However, since economies of LDCs are regarded as far less homogeneous than those of DCs, it is sometimes argued that the case of LDCs should be analysed in terms of ‘dual economy’ models. Unlike the DCs, the LDCs do not suffer from a labour supply constraint. The problem in LDCs is thus to transfer ‘surplus’ labour from unproductive to productive employment to promote growth. Such a problem was first tackled by Lewis (1954).
