The Cambridge Model

The Cambridge Model is a way of understanding how a country's economy develops over time. It suggests that countries move through distinct stages—starting with agriculture, then moving to manufacturing, and eventually focusing on services and advanced industries. This progression is driven by factors like technological advances, investments, and education. The model highlights how economic growth involves structural changes in industry and society, emphasizing the importance of innovation and modernization for long-term prosperity. It provides a framework for analyzing economic development and planning policies to support sustainable growth.