A Synthesis of the Lewis Development Model and Neoclassical Trade Models

Gordon Menzies

No 46, Working Paper Series from Economics Discipline Group, UTS Business School, University of Technology, Sydney

Abstract: A simplifed Lewis model with evidence-based assumptions treats all rural output as nontraded, and pays rural workers a convex combination of their average and marginal products. Lewis style transition is characterized as an increase in the weight on marginal product in the determination of the rural wage. This integration with standard trade models underscores the importance of trade for development, and predicts a real exchange rate appreciation for economies undergoing a Lewis style transition.

Keywords: Dual Economy; Lewis Model; Neoclassical trade models (search for similar items in EconPapers)
JEL-codes: F11 F31 F41 O13 O14 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2018-06-01
New Economics Papers: this item is included in nep-hpe and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.uts.edu.au/sites/default/files/2018-07 ... omies%20UTS%20WP.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uts:ecowps:46

Access Statistics for this paper

More papers in Working Paper Series from Economics Discipline Group, UTS Business School, University of Technology, Sydney PO Box 123, Broadway, NSW 2007, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Duncan Ford ().