ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Arthur Lewis’ best-known contribution to development economics was his path-breaking work on the transfer of labour from a traditional to a modern capitalist sector in conditions of unlimited supplies of labour.

Detailed explanation-2: -The Lewis turning point is a situation in economic development where surplus rural labor is fully absorbed into the manufacturing sector. This typically causes agricultural and unskilled industrial real wages to rise. The term is named after economist W. Arthur Lewis.

Detailed explanation-3: -The industrialisation strategy that was promoted in the Caribbean from the late 1940s was based on the Lewis model of “industrialization by invitation”, which essentially envisaged the development of industries through the attraction of foreign direct investment.

Detailed explanation-4: -Against that, it is worth remembering that Lewis saw “industrialisation by invitation” as a road to self-reliance, and that the model also assumed customs union and political integration.