Editing Big push model

{{Short description|A concept of development economics or welfare economics}}
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{{inline citations|date=August 2024}}

The '''Big Push Model''' is a concept in [[development economics]] or [[welfare economics]] that emphasizes the fact that a [[wiktionary:firm|firm]]'s decision whether to industrialize or not depends on the expectation of what other firms will do. It assumes [[economies of scale]] and [[oligopoly|oligopolistic]] market structure. It also explains when the [[industrialization]] would happen.

The major contributions to the concept of the Big Push were made by [[Paul Rosenstein-Rodan]] in 1943 and later on by [[Kevin M. Murphy|Murphy]], [[Andrei Shleifer|Shleifer]] and [[Robert W. Vishny|Vishny]] in 1989. Also, some contributions of [[Kiminori Matsuyama|Matsuyama]] (1992), [[Krugman]] (1991) and [[Paul Romer|Romer]] (1986) proved to be seminal for later literature on the Big Push.

Analysis of this economic model usually involves using [[game theory]].{{Citation needed|date=May 2024}}

The hallmark of the ‘big-push’ approach lies in the reaping of external economies through the simultaneous installation of a host of technically interdependent industries. But before that could become possible, we have to overcome the economic indivisibilities by moving forward by a certain “minimum indivisible step”. This can be realised through the injection of an initial big dose of a certain size of investment.{{Citation needed|date=May 2024}}

==See also==

*[[Rostow's stages of growth]]
*[[Ragnar Nurkse]]
*[[Ragnar Nurkse's balanced growth theory]]
*[[Virtuous circle and vicious circle]]
*[[Strategy of unbalanced growth]]
*[[Dual economy]]

==References==
*P Krugman, 1991: History vs Expectation. ''The Quarterly Journal of Economics''
*P Krugman, 1992: Toward a counter-counterrevolution in development theory. ''Proceedings of the World Bank Annual Conference on Development Economics''
*K Matsuyama, 1992: The market size, Entrepreneurship, and the Big Push. ''Stanford''
*KM Murphy, A Shleifer, RW Vishny, 1989: Industrialization and the Big Push. ''The Journal of Political Economy'' Vol. 97, pp.&nbsp;1003–1026 
*{{cite journal |last1=Romer |first1=Paul |date=1986 |title=Increasing Returns and Long-Run Growth |journal=Journal of Political Economy |volume=95 |issue=5 |pages=1002–1037 |doi=10.1086/261420 |jstor=1833190 |s2cid=6818002 |doi-access=free }}
*PN Rosenstein-Rodan, 1943: The Problems of Industrialisation of Eastern and South-Eastern Europe. ''The Economic Journal'' Vol.53
*[[Richard R. Nelson (economist)|R Nelson]], 1956: A Theory of the Low-Level Equilibrium Trap in Underdeveloped Economies. ''American Economic Review'' Vol. 46(5), pp.&nbsp;894–908
*[[UN Millennium Project]], 2005: Investing in Development: A Practical Plan to Achieve the Millennium Development Goals. New York: United Nations

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[[Category:Economics models]]