Big Push Model - The Three Indivisibilities

The Three Indivisibilities

According to Rosenstein-Rodan, there exist three indivisibilities in underdeveloped countries. These indivisibilities are responsible for external economies and thus justify the need for a big push. The externalities are as follows-

  1. Indivisibility in production function
  2. Indivisibility of demand
  3. Indivisibility in the supply of savings

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