Big push model

Empirical methods Prescriptive and policy The Big Push Model is a concept in development economics or welfare economics that emphasizes the fact that a firm's decision whether to industrialize or not depends on the expectation of what other firms will do.

The major contributions to the concept of the Big Push were made by Paul Rosenstein-Rodan in 1943 and later on by Murphy, Shleifer and Vishny in 1989.

Also, some contributions of Matsuyama (1992), Krugman (1991) and Romer (1986) proved to be seminal for later literature on the Big Push.

[citation needed] The hallmark of the ‘big-push’ approach lies in the reaping of external economies through the simultaneous installation of a host of technically interdependent industries.

This can be realised through the injection of an initial big dose of a certain size of investment.