We conclude, therefore, that when one takes into account the labor saving bias of most modern technological transfer, the existence of substantial capital flight, the widespread non existence of rural surplus labor, the growing prevalence of urban
surplus labor, and the tendency for modern-sector wages to rise rapidly even where substantial open unemployment exists, the Lewis two-sector model though extremely valuable as an early conceptual portrayal of the development process of sectoral interaction and structural change requires considerable modification in assumptions and analysis to fit the reality of contemporary developing nations.