Rural Urban Migration in Bangladesh seen through the lens of the Lewis Dual Sector Model shefu

Topics: Industry, Economy, Economic development Pages: 13 (3298 words) Published: April 30, 2015
Introduction

1

Introduction

Rural-Urban Migration in Bangladesh
seen through the lens of the
Lewis Dual Sector Model

Submitted To:
Professor Mohammed Farashuddin, Ph.D
Guest Faculty
Course: E202 Macroeconomics
IBA, University of Dhaka

Submitted By:
Shafqat Aurin Siddiqua
Roll: RH-04
BBA Batch 21
Date of Submission: April 21, 2015

2

Introduction

Contents
Introduction .................................................................................................................................................. 4 What is the Lewis Dual Sector Model? ....................................................................................................... 4 History ................................................................................................................................................... 4 Theory ................................................................................................................................................... 4 Assumptions of the Model, and their criticisms ................................................................................. 5 Dual Sector Model in respect of Bangladesh ............................................................................................. 6 So, why are rural Bangladeshis so attracted to the urban life? ........................................................ 6 An outlook on application of Dual Sector Model in Bangladesh ....................................................... 7 Shortcomings and possible solutions for the application of the Lewis model ......................................... 9 Conclusion ................................................................................................................................................. 10 Appendix .................................................................................................................................................... 11 References ................................................................................................................................................ 13

3

Introduction

Introduction
Bangladesh is the eighth most populous country in the world, with a population of approximately 160 million people; and with its population density of 1101 people/km2, Bangladesh houses about 2.19% of the world’s entire population.

30% of that vast population, which amounts to approximately 47,334,620 people, is urban residents, and the number has been only steadily increasing in the present years. The current rate of urbanization is 2.96 percent annually, and if it subsists Bangladesh will most likely have an urban population over 50 million by the end of 2015.

While internal urbanization is seen to be a sign of a developing nation, excessive rates of rural-urban migration can have detrimental effects upon the economy. This paper aims to look at the scenario of rural-urban migration in Bangladesh, and its possible effects, as per the Lewis Dual Sector Model.

What is the Lewis Dual Sector Model?
The Dual Sector model is a model in Developmental economics that explains the growth of a developing economy in terms of a labour transition between two sectors, a traditional agricultural sector (subsistence sector) and a modern industrial sector (capitalist sector). The model is also sometimes called the Lewis model, in honor of its inventor, Sir W. Arthur Lewis, who one of the recipients of the Nobel Memorial Prize in Economics in 1979.

History
Initially published in an article entitled "Economic Development with Unlimited Supplies of Labor" written in 1954 by Sir Arthur Lewis, the model itself was named in Lewis's honor. First published in The Manchester School in May 1954, the article and the subsequent model were instrumental in laying the foundation for the field of Developmental economics. The article itself has been characterized as one of the most influential contribution to the establishment...

References: Chenery H, Syrquin M. Patterns of development, 1950–1970. London: Oxford
University Press; 1975.
Gary S. Fields (December 2004). "Dualism in the Labor Market: a Perspective on the
Lewis Model after Half a Century"
Ranis, Gustav (August 2004). "Arthur Lewis ' contribution to development thinking and
policy"
Minami, Ryoshin; Ma, Xinxin (23 September 2010). "The Lewis turning point of
Chinese economy: Comparison with Japanese experience"
Fisher, Allan GB. "Production, primary, secondary and tertiary." Economic Record
15.1 (1939): 24-38
Islam, Nazrul (June 2012): “Urbanization, Municipalization and Urban Governance in
Bangladesh”
Mahbub ul Haq (2014): Human Development in South Asia 2014 – Urbanization:
Challenges and Opportunities – 17th Annual Report
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