Dual economy thesis
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Dual economy - Economics Help
The dual-economy model predicts that holding productivity constant, labor reallocation from less to more productive sectors, also known as 'structural change' results in improvement in economy-wide productivity. The objective of this thesis is to test the empirical predictions of this model using sectoral-level data from twenty-eight developing countries. Using the shift-share growth decomposition approach, we find regional growth-enhancing effects of structural change in Asia, Latin America and North Africa from, to and growth-reducing effects in Sub-Saharan Africa over the same period. However, as intersectoral productivity gaps disappeared after , technological progress led the growth process in much of Asia and North Africa, while Sub-Saharan Africa and Latin America benefited immensely from structural change over the same period. At the country level, however, structural change has been growth-reducing in many countries as labor moved in the wrong direction.
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The US Middle Class is Shrinking and Moving Towards a “Dual Economy”
A dual economy refers to the existence of two distinct types of economic segments within an economy. This involves:. The British economist W.
These theories owe their origin to the celebrated work of Nobel Laureate Sir W. Arthur Lewis in An elaborate discussion of the labour-surplus economy is given by G. Ranis and John Fei in At some later point in the history of dual economics, the supply of labour is exhausted then only a rising wage rate will draw more labour out of agriculture.
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