What is Unbalanced Growth?
Unbalanced growth is a situation in which the various sectors of a given economy are not growing at a rate similar to one another. Specific sectors of the economy will be growing at a rapid rate, while other sectors are either stagnant or experiencing a significantly reduced rate of growth. When economic growth patterns such as unbalanced growth appear, the phenomenon usually indicates that major shifts in the overall economy are about to take place. There are a number of different theories about what produces unbalanced growth. Some opinions are based on an imbalance between imports and exports connected with the economy of the country. This understanding involves production that once took place within the country has now moved to another nation. While the goods are still available, they are now imported rather than produced domestically. The result is the elimination of jobs within a given industry, a rise in unemployment, and a reduction in disposable income. While imports rise, oth
