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The Big Push Model is a concept in development economics or welfare economics that emphasizes the fact that a firm's decision whether to industrialize or not depends on the expectation of what other firms will do. It assumes economies of scale and 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 Murphy, Shleifer and Vishny in 1989. Also, some contributions of Matsuyama (1992), Krugman (1991) and 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]}

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]}

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. 1003–1026
Romer, Paul (1986). "Increasing Returns and Long-Run Growth". Journal of Political Economy. 95 (5): 1002–1037. doi:10.1086/261420. JSTOR 1833190. S2CID 6818002.
PN Rosenstein-Rodan, 1943: The Problems of Industrialisation of Eastern and South-Eastern Europe. The Economic Journal Vol.53
R Nelson, 1956: A Theory of the Low-Level Equilibrium Trap in Underdeveloped Economies. American Economic Review Vol. 46(5), pp. 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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 {{Short description|A concept of development economics or welfare economics}}
 {{Economics sidebar}}
+{{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 explain when the industrialization would happen.
+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 contribution the concept of the Big Push were made by [[Paul Rosenstein-Rodan]] in 1943 and later on by [[Kevin M. Murphy|Murphy]], Shleifer and [[Robert W. Vishny|Vishny]] in 1989. Also some contribution of [[Matsuyama]] (1992), [[Krugman]] (1991) and [[Romer]] (1986) proved to be seminal for later literature on the Big Push.
+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]].
+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==
@@ Line 14: / Line 17: @@
 *[[Ragnar Nurkse's balanced growth theory]]
 *[[Virtuous circle and vicious circle]]
-*[[Critical minimum effort theory]]
 *[[Strategy of unbalanced growth]]
-*[[Low level equilibrium trap]]
 *[[Dual economy]]
-{{Partial Theories of Development-footer}}
 ==References==
+*P Krugman, 1991: History vs Expectation. ''The Quarterly Journal of Economics''
-{{Reflist|refs=
+*P Krugman, 1992: Toward a counter-counterrevolution in development theory. ''Proceedings of the World Bank Annual Conference on Development Economics''
-* <ref name=MYI>{{citation|last=Myint|first=Hla|title=The Economics of the Developing Countries|publisher=Hutchinson University Library|year=1969|pages=119}}</ref>
+*K Matsuyama, 1992: The market size, Entrepreneurship, and the Big Push. ''Stanford''
-* <ref name=AGA-SINGH>{{citation|title=The Economics of Under[[Economic development|development]]|publisher=Oxford University Press India|year=1969|ISBN=978-0-19-560674-4|pages=[https://archive.org/details/economicsofunder0000unse/page/303 303–4]|author=A.N. Agarwala, S.P. Singh}}</ref>
+*KM Murphy, A Shleifer, RW Vishny, 1989: Industrialization and the Big Push. ''The Journal of Political Economy'' Vol. 97, pp.&nbsp;1003–1026
-* <ref name=SCI>{{citation|last=Scitovsky|first=Tibor|title="Two Concepts of External Economies" in "The Journal of Political Economy",Vol.62,no.2|publisher=Chicago University Press|year=April 1954|pages=143–151}}</ref>
+*{{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 }}
-* <ref name=MEA>{{citation|last=Meade|first=James|title="External Economies and Diseconomies in a Competitive Situation" in "The Economic Journal",Vol.62,no.245|publisher=Royal Economic Society|year=March 1952|pages=54–67}}</ref>
+*PN Rosenstein-Rodan, 1943: The Problems of Industrialisation of Eastern and South-Eastern Europe. ''The Economic Journal'' Vol.53
-* <ref name=Rodan-Notes>{{citation|title="Notes on the theory of the Big Push", in Howard S. Ellis (ed.) for Latin America|publisher=Macmillan & Co.|year=1961}}</ref>
+*[[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
-* <ref name = MISPURI>{{cite book|title=Economics Of Development And Planning — Theory And Practice|year=2010|publisher=Himalaya Publishing House|isbn=81-8488-829-5|author=S. K. Misra|edition=12th|author2=V. K. Puri|pages=217–222}}</ref>
+*[[UN Millennium Project]], 2005: Investing in Development: A Practical Plan to Achieve the Millennium Development Goals. New York: United Nations
-* <ref name=PAT>{{citation|title=Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches|publisher=United Nations University – World Institute for Development Economics Research Discussion Paper No. 2007/05|year=October 2007|author=Patrick Guillaumont, Sylviane Guillaumont Jeanneney}}</ref>
-* <ref name=FURT>{{citation|last=Furtado|first=Celso|title="Development and Underdevelopment: A Structural View of the Problems of Developed and Underdeveloped Countries" (translated by Ricardo de Augiar and Eric Charles Drysdale)|publisher=University of California Press|year=1964}}</ref>
-* <ref name=NATH>{{citation|last=Nath|first=S.K.|title="The Theory of Balanced Growth",Oxford Economic Papers, Vol. 14, No. 2|publisher=Oxford University Press|year=June 1962|pages=138–153}}</ref>
-* P Krugman, 1991: History vs Expectation. ''The Quarterly Journal of Economics''
-* P Krugman, 1992: Toward a counter-counterrevolution in [[Economic development|development]] theory. ''Proceedings of the World Bank Annual Conference on [[Economic development|development]] Economics''
-* KM Murphy, A Shleifer, RW Vishny, 1989: [[Industrialisation]] and the Big Push. ''The Journal of Political Economy'' Vol. 97, pp. 1003–1026
-* 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. 894–908
-*[[UN Millennium Project]], 2005: Investing in [[Economic development|development]]: A Practical Plan to Achieve the Millennium [[Economic development|development]] Goals. New York: United Nations
-*
-}}
+{{Partial Theories of Development-footer}}
-== External links ==
-# http://monthlyreview.org/2006/05/01/the-neoliberal-rebirth-of-development-economics
-# https://web.archive.org/web/20110808035619/http://are.berkeley.edu/~adelman/WORLDEV.html
 [[Category:Economics models]]