Stage 3 -- Take Off
Industrialization increases, with workers switching from the
agricultural sector to the manufacturing sector. Growth is
concentrated in a few regions of the country and in one or two
manufacturing industries. The level of investment reaches over
10% of GNP.
The economic transitions are accompanied by the evolution of
new political and social institutions that support the
industrialization. The growth is self-sustaining as investment
leads to increasing incomes in turn generating more savings to
finance further investment.