The development path of resource-rich nations, such as Angola or Nigeria, diverges significantly from traditional models of structural change. Rather than transitioning surplus agricultural workers into low-cost, labor-intensive manufacturing, growth has been concentrated in highly capital-intensive extractive industries like petroleum and copper mining. While these sectors generate substantial export revenues and boost GDP, they require specialized technical expertise and employ very few workers relative to their output. As a consequence, rural migrants fleeing low-productivity agriculture are unable to find employment in the modern industrial sector, leading instead to a massive expansion of low-productivity urban informal services.
Explain what is meant by the Lewis model. Refer to Extract B in your answer.
16 exam-style questions on Edexcel A A Level Economics 4.3.2 Factors influencing growth and development. Each one has a worked solution and a mark scheme showing where the marks go.