THE TRADITIONAL ECONOMY
An underdeveloped economy in which communities use primitive tools and methods to harvest and hunt for food, often resulting in little economic growth. Traditional economies are often found in rural regions with high levels of subsistence farming. Countries that evolve their economies past the traditional level often develop into market economies or command economies.
In the mid 1960 to 1990, the economy enhanced by using skilled human capital, manual procedure and other traditional methods for example buying transaction using barter system. Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.
Traditional Economy Model
Industry GDP Share 1900-1995
Since 1940s, we can see that in driven of heavy production requirements of World War II, the manufacturing overtake the traditionally dominant agriculture sector.
In the 1950s and 60s manufacturing remained buoyant (Sinclair, 1976, pp 211-262), while services provided the engines of growth, with economic growth in these two decades some way above the 20th century average (Commonwealth of Australia, 2001). In contrast, primary industries declined gradually as a share of GDP.
Structure of the Malaysian economy (contribution to GDP)
Categories:
Past IT
