The Big Push Model and Developing Economies

Published: 01st July 2009
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It was Paul Rosenstein-Rodan who first coined the term "Big Push Model" back in 1943 in his work on growth in Eastern European Economies. It is an idea in development economics that lays importance on the fact that a firm's decision whether to industrialize or not depends on the expectation of what other firms will do. Big Push keeps in mind all economic factors in order to make a decision to industrialize.

Developing economies will start out with small scale projects and businesses, and in order to compete with other capitalist countries they will need to industrialize. Industrialization will surely be the only way for their economy to grow. An increase in Company formation in the developing country will contribute towards proper industrialization of it's production of goods. The more businesses, whether large or small, operating in the country will allow the economy to establish it's presence in the global market.

And it seems that these days it is those countries who were once considered not to be major players that are now thriving, China being a prime example. China had always been important where cheap production of goods had been concerned, but now it is emerging as a possible new economic superpower. Other countries, Brazil for instance, are also seeing growth, it is expected to see over 4% of growth next year. One of the world's poorer regions, Brazil has the world's largest untapped oil reserves outside of Saudi Arabia, and the mood is optimistic with an ambitious construction plan in place ahead of the 2014 World Cup.

Lorraine McInerney is currently working as a Freelance Web Content Article Writer. She has an Arts Degree in English Literature and Ancient Classics, and she is currently a post-graduate student of English, specializing in Post-Colonial Literatures. She will be writing her thesis this summer on "Liminality in Post-Colonial Women's Writing".

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