Rummana Zafar, Adeel Sultan Qadri

DOI: http://dx.doi.org/10.22555/pbr.v17i2.124


The study focuses on stage of Lewis Ranis-Fei model, role of capital accumulation in economic growth and impact of labour reallocation in economic development. Using  time series data from 1984 to 2013 the study develops a Cobb Douglas production function of agriculture and non agriculture sector. Sectoral growth decomposition approach was used to reveal the contribution of factors of production in economic growth. Labour reallocation was estimated by labour reallocation equation to investigate its effect on economic growth. Further it also indicates the stage of economic development. The study found that the role of capital accumulation in agriculture and non agriculture sector was highly significant where as the role of labour reallocation was very low in economic development. Further the study reveals that Pakistan stands on the first stage of Lewis Ranis-Fei model where  MPL is lower than APL .


Dualistic growth, measurements of economic growth, agriculture, cevelopment

Full Text:



Cai, F. (2007)TheLewisian turning point of China’s economic development. In Cai, F.and Du, Y. (eds.) The Coming Lewisian Turning Point and Its Policy Implications, Reports on China’s Population and Labour. Beijing: Social Sciences Academic Press.

Cai, F. and Wang D. W., (1999), “The sustainability of China’s Economic Growth and Labor Contribution,” Journal of Economic Research, No. 10.

Ercolani .Marco G. & Wei.Zheng, 2010.”An Empirical Analysis of the Lewis-Ranis-FEi Theory of Dualistic Economic Development for China,” Discussion Papers 10-06, Department of Economics, University of Birmingham.

Ercolani .Marco G. & Wei.Zheng, 2011. “An Empirical Analysis of China’s Dualistic Economic Development: 1965–2009,” Asian Economic Papers, MIT Press, vol. 10(3), pages 1-29, October

Fields, G. S., 2004, Dualism in the labor market: a perspective on the lewis model after half a century. The Manchester School, 72, pp. 724-35.

Fields, G. S., 1994, Changing labor market conditions and economic development in Hong Kong, the Republic of Korea, Singapore, and Taiwan, China. World Bank Economic Review, 8, pp. 395-414.

Ho Y. M. (1972). “Developing with Surplus Population. The Case of Taiwan: A Critiqueof the Classical Two-Sector Model, a la Lewis,” Economic Development and Cultural Change, Vol. 20, No. 2, pp. 210-234.

Islam, N. and K. Yokota, 2006, An initial look at China’s industrialization in light of the Lewis growth model. East Asian Economic Perspectives, 17, pp. 103-32. Knight, J. (2007) China, South Africa and the Lewis model, research paper, World Institute for Development Economic Research (UNU-WIDER).

Lewis, W.A. (1954), “Economic Development with Unlimited Supplies of Labor,” the Manchester School, Vol. 22, No.2, pp. 139-191. Lewis, W.A. (1958), “Unlimited Labour: Further Notes”, the Manchester School,Vol. 26, No. 1, pp.1-32.

Lewis, W.A. (1979), “The Dual Economy Revisited,” the Manchester School, Vol. 47, No.3, pp. 211-229.

Malthus, T. R., (1766) “An Essay on the Principles of Population or a View of Its Past and Present”, 8th edition, London : Reeves and Turner, 1878.

Minami, R., (1967a), “Population Migration Away from Agricultural in Japan”, Economic Development and Cultural Change, Vol. 15, No. 2, Part 1., p.183-201.

Minami, R, (1967b), “The Turning Point in the Japanese Economy”, Center DiscussionPaper No. 20, the Economic Growth Center, Yale University

Ohkawa, K. (1965). Agriculture and turning points in economic growth, The Developing Economies, 3: 471-486

Ranis, G. and Fei, J.C.H. (1961), “A Theory of Economic Development,” American Economic Review, Vol. 51, pp. 533- 565.

Rostow, W. W. (1956), “The Take-off into Self-Sustaining Growth”, Economic Journal, Vol. 66, pp. 25-48

UNDP MDGs Report 2013 http://www.pk.undp.org/content/pakistan/ en/home/library/mdg/pakistan-mdgs-report-2013/

Woo, W.T. (1998). Chinese Economic Growth: Sources and Prospects, in Fouquin, M. and Lemoine, F. (ed.), The Chinese Economy, London: Economica, pp.17-48. Data Sources: Handbook of statistics (SBP) Economic survey (Ministry of Finance Government of Pakistan)


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.