Lewis on Industrialisation and Industrial Policy

Abstract The Lewis model is widely cited, and its implications for the transfer of workers from low productivity to higher productivity jobs have been reflected in recent discussions of ‘growth‐retarding’ structural change in economies where the manufacturing share in GDP is declining. What is less well known is Lewis's recommendations on industrial policy in the context of low income economies. This paper reviews Lewis's position and links it with contemporary debates on the role of industrial policy and the challenges facing Africa. In relation to specific policy proposals, his emphasis on modest and temporary levels of support (either through trade protection or other means), with government provision of infrastructure and support for training, is now a standard part of policy discussion. Copyright © 2017 John Wiley & Sons, Ltd.