Surplus workers
disguised unemployment high in many developing countries rural areas, where people are effectively contributing little, if agricultural output. Consequently, many can move into the industrial sector without significantly reducing agricultural output. Like the infant-industry argument , the industrialization argument presumes that the the infant-industry argument, the unregulated importation of lower-priced manufactures prevents development of a domestic industry. Although proponents of this argument explain they may be developing an inefficient industrial sector does not become globally competitive, they nevertheless assert that there will be economic growth. In other words, growth occurs because the gain jobs
Shifting people out of however, can create at least two problems:
1. In rural areas, the underemployed may lose the safety net of their extended families, while many migrating to urban areas cannot find enough suitable jobs, housing, and so- cial services. For example, although millions of Chinese have moved to cities to find jobs, many have not prospered through the move.
2. Improved agriculture practices may be a better means of achieving economic success than a drastic shift to industry. Many developed countries continue to profit from exports of agricultural products and maintain high per capita income with a mix of industry and efficient agricultural production.
Investment inflows Import restrictions, applied to spur industrialization, also may increase FDI, which provides capital, technology and jobs. Barred from exporting to an attractive