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Introduction: The Dual Economy Approach to Economic Growth and Development

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  • Peter Rangazas

    ()
    (Department of Economics, Indiana University-Purdue University Indianapolis, IN, U.S.A.)

Abstract

This volume contains papers that use a two-sector approach to studying economic growth. Many economists believe taking such an approach is essential, especially for understanding the early stages of development. A two-sector model generates important insights about both the accumulation of physical and human capital (Mankiw et al. 1992) and improvements in total factor productivity (TFP) (Hall and Jones, 1999; Parente and Prescott, 2000). The main premise is that the structural transformation of an economy, as one sector expands and another contracts, is a fundamental cause, and not just a by-product, of aggregate growth.

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Bibliographic Info

Article provided by Eurasia Business and Economics Society in its journal Eurasian Economic Review.

Volume (Year): 3 (2013)
Issue (Month): 1 (Spring)
Pages: 1-7

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Handle: RePEc:ebz:eerjrn:v:3:y:2013:i:1:p:1-7

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Related research

Keywords: Economic Growth and Development; Structural Change; Dual Economy; Agricultural Labor Productivity; Wage Gaps;

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