Economic Growth and Development

8.

Structural Transformation and Sectoral Change

8.1.

The Lewis Dual-Sector Model

8.1.1.

Traditional Agricultural Sector

8.1.1.1.

Subsistence Agriculture

8.1.1.2.

8.1.1.3.

Low Productivity

8.1.2.

Modern Industrial Sector

8.1.2.1.

Capitalist Production

8.1.2.2.

Higher Productivity

8.1.2.3.

Wage Employment

8.1.3.

Labor Transfer Mechanism

8.1.3.1.

Rural-Urban Migration

8.1.3.2.

Wage Differentials

8.1.3.3.

8.1.4.

Capital Accumulation Process

8.1.4.1.

Surplus Extraction

8.1.4.2.

8.1.4.3.

Industrial Expansion

8.2.

Patterns of Structural Change

8.2.1.

Decline of Agriculture

8.2.1.1.

Employment Share

8.2.1.2.

8.2.1.3.

Productivity Growth

8.2.2.

Rise of Industry and Services

8.2.2.1.

Manufacturing Growth

8.2.2.2.

Service Sector Expansion

8.2.2.3.

Premature Deindustrialization

8.2.3.

Shifts in Employment Structure

8.2.3.1.

Sectoral Labor Allocation

8.2.3.2.

Occupational Change

8.2.3.3.

Skill Requirements

8.2.4.

Productivity Growth Across Sectors

8.2.4.1.

Sectoral Productivity Gaps

8.2.4.2.

Reallocation Effects

8.2.4.3.

Aggregate Productivity

8.3.

Industrialization and Development

8.3.1.

Role of Manufacturing

8.3.1.1.

Engine of Growth

8.3.1.2.

Technological Progress

8.3.1.3.

Employment Creation

8.3.2.

Linkages and Spillovers

8.3.2.1.

Backward Linkages

8.3.2.2.

Forward Linkages

8.3.2.3.

Knowledge Spillovers

8.3.3.

Industrial Policy Approaches

8.3.3.1.

Import Substitution

8.3.3.2.

Export Promotion

8.3.3.3.

Industrial Clusters

8.4.

The Demographic Transition

8.4.1.

Stages of Demographic Change

8.4.1.1.

8.4.1.1.1.

High Birth and Death Rates

8.4.1.1.2.

Stable Population

8.4.1.2.

Early Transition

8.4.1.2.1.

Declining Death Rates

8.4.1.2.2.

Population Growth

8.4.1.3.

Late Transition

8.4.1.3.1.

Declining Birth Rates

8.4.1.3.2.

8.4.1.4.

Post-Transition

8.4.1.4.1.

Low Birth and Death Rates

8.4.1.4.2.

Aging Population

8.4.2.

The Demographic Dividend

8.4.2.1.

Working-Age Population Growth

8.4.2.2.

Dependency Ratios

8.4.2.3.

Labor Force Growth

8.4.2.3.1.

Economic Participation

8.4.2.3.2.

Productivity Effects

8.4.2.4.

Savings and Investment Effects

8.4.2.4.1.

Life-Cycle Savings

8.4.2.4.2.

Capital Accumulation

8.4.3.

Aging Populations and Growth

8.4.3.1.

Dependency Burden

8.4.3.2.

Healthcare Costs

8.4.3.3.

Pension Systems

8.5.

Urbanization and Development

8.5.1.

Urban Growth Patterns

8.5.1.1.

Rural-Urban Migration

8.5.1.2.

Natural Increase

8.5.1.3.

Reclassification

8.5.2.

Agglomeration Economies

8.5.2.1.

Scale Economies

8.5.2.2.

Knowledge Spillovers

8.5.2.3.

Labor Market Pooling

8.5.3.

Urban Challenges

8.5.3.1.

Infrastructure Deficits

8.5.3.2.

8.5.3.3.

Environmental Problems

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9. Development Strategies and Policies