For the research problem defined in Assessment 1, undertake a critical review of the literature and formulate research questions. Report structure Coversheet download Title Keywords Introduction...

Running head: Literature Review on Rostow’s Theory
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Literature Review on Rostow’s Theory
LITERATURE REVIEW ON ROSTOW’S THEORY
Table of Contents
LITERATURE REVIEW ON ROSTOW’S THEORY    1
Research question    3
Stages and concept of Rostow’s theory    3
Previous Study about Economic Growth    4
Criticisms of Rostow’s Modernization Theory    6
Importance and relevance of this modernised theory in third world country    7
Research question
1. What is the importance of Rostow’s theory in developing countries?
2. What is the importance of Rostow’s theory in thirds word world country?
3. What are the phases of Rostow's theory in relevance to the modernised countries?
4. What are the criticisms of Rostow’s theory that can help the country to rectify loopholes and grow?
Considering the research question, the present research is going to determine different aspects of the given theory and its impact along with the relevance of the idea in the context of third world country from a global perspective.
Rostow’s theory is found to be important in growing economics for any country by following five salient steps in order.
Stages and concept of Rostow’s theory
Economically, the countries are divided into some categories which define the development ladder of those countries. These are developed country and developing country. The developed countries are generally the first world country, and the developing countries are categorised as third world country (Omolara, 2019). Rostow's modernisation theory of development states about five different stages that can assist a developing country in becoming a well-developed country. These stages are –
Traditional Society: The conventional society of the theory of development reflects the stage where the economy is based mainly on agriculture. The economy is consisting of intensive labours and the trade policies are weaker than in other countries (Muda et al. 2020). The economy is mainly based on primary sectors and has minimal intention to move towards the secondary and tertiary industries.
Preconditions for taking-off:
This stage defines a society that is planning to shift its production from the primary sector to the manufacturing or secondary industry.
Take-off: Economist Rostow defines this stage as an intensive growth of a society or a country, as the workforce is initiating for a new industry which will positively affect the growth structure of a nation.
Driving into maturity:
This is a long term stage that describes the progress in standard of living and technology which induces the general economic growth of a society or a country (Green & Russo, 2017).
Age of high mass consumption:
According to Rostow, only the 1st world developed countries avail this stage of development. In this stage, the economy of a country is controlled and measured by the capitalist economic system created by high mass production and economic development (Green & Russo, 2017). The stage avails sustainable tertiary industries or service sectors which makes a stable production. Western countries are tagged as a developed country according to Rostow.
Previous Study about Economic Growth
Apart from Rostow, many other economists have stated about the economic growth and the impacts upon the society. One of them said about the ECM (e
or co
ection model) where the economist stated about sustainable development and property structure (Vishal, 2019). Another set of economists researched the relation between economic growth and poverty. The study was initiated with the third world country data structure, which helped to revive the relationship between development and poverty. In the case of Brazil, economic growth does reduce poverty, and there is a solid reverse relation between economic development and poverty.
Economic research was held after the financial crisis of Asia. The study was based in Indonesia, where the economists researched and developed findings of the relationship between poverty and economic growth (Khoramshad & Mosanejad, 2017). The result of the research stated that...