| a British and Australian economist and statistician who worked in both the United Kingdom and Australia. He pioneered the use of the gross national product (GNP) as the basis for studying national economies. | Colin Grant Clark (2 November 1905 – 4 September 1989) |
| Main Works of Colin Grant Clark | “A System of Equations Explaining the United States Trade Cycle”
“The Economic Functions of a City in Relation to Its Size”
“Economic Development in Communist China” |
| was a noted New Zealand-born economist. Perhaps his most notable
the contribution was to investigate economic development in terms of the
sequential dominance of different sectors of the economy: the primary,
secondary and tertiary sectors (three-sector theory). | Allan George Barnard Fisher
(26 Oct 1895 in Christchurch, New Zealand – 8 January 1976 in London, England) |
| Main Works of Allan George Barnard Fisher | “Some Problems of Wages and Their Regulations”
“The Clash of Progress and Security”
“International Implications of Full Employment” |
| presented in 1955, dominated development theory between the 1960s and 1970s. It is also known as the two-sector model and the surplus-labor model. It focused on the need for countries to transform their structures, away from agriculture, with low productivity of labor, towards industrial activity, with a high productivity of labour. | The Lewis model |
| the Lewis model the line of argument runs | • An economy starts with two sectors; a rural agricultural sector
and an urban industrial sector. Agriculture generally under-employs
workers and the marginal productivity of agricultural labour is
virtually zero.
• Therefore, transferring workers out of agriculture does not reduce
productivity in the whole economy.
• Labour is then released for work in the more productive, urban,
industrial sector.
• Industrialisation is now possible, given the increase in the supply
of workers who have moved from the land.
• Industrial firms start to make profits, which can be re-invested
into even more industrialisation, and capital starts to accumulate.
• As soon a capital accumulates, further economic development can
sustain itself. |
| Evaluation of the Lewis model | • Urbanisation may create problems, such as poverty, squalor and
shanty-towns, with unemployment replacing underemployment.
• The financial benefits from industrialisation might not trickle
down to the majority of the population. |
| Clark-Fisher | The Clark-Fisher model shares some characteristics of early linear
stage models and later structural change models. In this
model, structural change must occur for economic progress to occur in
capitalist economies. |
| The Conditions of Economic Progress that became an established component of the economic lexicon. In Economic Conditions, Clark describes a tripartite economic structure consisting | primary, secondary, and tertiary economic activities. Primary activities are agricultural or extractive in nature and are limited by natural growth factors. Secondary activities are primarily composed of manufacturing and production activities and are limited by mechanical factors. Tertiary activities are service-based and are dependent on, and limited by, human skill and expertise. Primary and secondary activities can be further distinguished from tertiary activities by the nature of their output, which is tangible in nature, whereas tertiary activities produce intangible outcomes. The tertiary for Clark is also a repository for activities which do not fit under the narrower and much more traditional understandings of the first two sectors. |
| Why does a service sector emerge after industrialisation? | High income elasticity of demand
Low productivity of labour
Employment Structure Change |
| High income elasticity of demand | generally a high-income elasticity of demand for services,
especially leisure, tourism, and financial services. As incomes rise,
demand for services increases, and more employment and national output are allocated to service production. |
| Low productivity of labour | productivity in the service sector is lower than in the manufacturing sector because it is harder to apply new technology to many services. This means that over time prices of services rise relative to primary and secondary goods |
| Employment Structure Change | The employment structure of the country is based on the division between the primary, secondary, and tertiary sectors. The richest country, focused and is more capable on having more job at the tertiary sector, while the poorest country has a high percentage in primary jobs. |
| Limitations of the Clark Fisher Model | • There is a debate whether a country could develop further than the
post- industrial stage.
• The speed of development varies around the world, and it cannot be
the same.
• Tourism could lead to a bypass in the Industrial stage.
• The model neglects the idea of international economy context.
There are a lot of LIC’s where the main sector is the service sector,
without having a properly established secondary sector.
• Kenya (Tourism)
• Malta (Tourism) |
