Informal economy

2.1 Lewis Dual Sector Model of Economic Development The Lewis Dual Sector model was proposed by Arthur Lewis in 1954 and has two main sectors: An agricultural/rural sector characterized by subsistence nature i.e. most of the agriculture produce are meant for own consumption rather than traded hence zero marginal productivity of labour, and an urban/industrial/manufacturing sector which has a high demand for labour force and offers higher wages than the ones being offered in the rural areas.…

for many years the key player of the national economy, where most of the investment and credit were concentrated and where most foreign exchange and tax revenues were generated. If production and sugar prices raised much, there were enough foreign exchange to import consumer goods for the population and inputs and techniques for businesses. In turn, the bank recovered loans and the government raised its revenue. In other words, the capitalist economy was experiencing a boom. But if the opposite…

residents as many of them attempt to create a better life for their families. A small slum located near the Mumbai airport, Annawadi highlights the juxtaposition of an Indian underclass and the growing economy of the country around them. While so many of these families, through an expanding global market economy, can see the benefits of globalization and capitalism, the potential upsides of these systems maintain out of reach as most Annawadians deal with the harsher realities of poverty,…

Economic growth relates to the increased output within an economy. It can come from rural to industrial shifts, invention, innovation and technological progress; it requires savings and investment, along with a well-implemented policy framework and can be measured through the economies GDP. Haggard, (2004) suggested economic growth can result from productive inputs, capital and labour or from greater efficiency in their use. It can lead to economic development, which Michael Todaro (2011)…

a country with low production factories and industrialization leaves its citizens prone to an increase in income gap between skilled and unskilled workers. For example, Mexico is a developing country of the Latin America, who slowly maintains its economy by accepting major contracts with recognized automobile factories such as General Motors and Chrysler. Therefore, industrialization clearly suggest an increase of capital revenue as well as massive inflow of foreign capital. However, although…

degradation, despite increases in technological advancement, all point to the existence of these “geopolitically undercutting” trends. The subterranean trend which underlies a significant portion of Expulsions: Brutality and complexity in the Global Economy, is the trend of expelling individuals and biospheres which fail to contribute to the idea of growth in post 1980s advanced capitalism. After dissecting specific and distinct instances of expulsion, this trend very apparently underlies the…

Africa re-joined the scene of international economies in the 1990’s during which time globalisation had begun to gain prominence. Its move from a socialist socialist movement to a democratic system in 1994 has been a major key towards its gain in economic performance during the globalisation period. This is as the first democratically elected president, Nelson Mandela moved away from the previous Apartheid governments acts towards South Africa’s economy. Mandela used the gains for the…

largest sector providing employment opportunities to people, both as unskilled labourers and skilled workers. Globally, the construction industry is also considered to be one of the most indicative in terms of contributing towards the GDP of the economy. A congregation of trades and skills make up the on-site and off-site workforce. The assumption has always been that only a man can lead a project on an architectural/construction site, but is it debatable?…

My interest in economics was developed since I was a child. I was given birth in a “financial family”; my parents’ works were all related to economics. Therefore, since I was young, I had the opportunity to observe and understand the financial work. In middle school, when my parents discussed economic events, I did not feel bored. To the contrary, I listened carefully and even made efforts to express personal opinions. Undoubtedly, sometimes my opinions were infantile and funny. However, my…

The present thesis, is aimed to analyze the social behavior of transnational corporations during the economic crisis of late 2000s. While the growth of world´s GDP was negative in 2009 (-2.1%) and many corporations experienced cuts in employment, limited access to credit, and reductions in capital and technological spending (Campello et al., 2010: 1), the social investment of many firms followed a counter-intuitive move by increasing their social contributions in more than 228%. Between 2004…