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The dual economy in long-run development

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  • Dietrich Vollrath

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Abstract

This paper provides a dynamic model of the dual economy in which differences in productivity across sectors arise endogenously. Rather than relying on exogenous price distortions, duality arises because of differences between sectors in the separability of their fertility and labor decisions. The model demonstrates how a dual economy will originate, persist, and eventually disappear within a unified growth framework. It is also shown that agricultural productivity growth will exacerbate the inefficiencies of a dual economy and slow down long-run growth.

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File URL: http://hdl.handle.net/10.1007/s10887-009-9045-y
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Bibliographic Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 14 (2009)
Issue (Month): 4 (December)
Pages: 287-312

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Handle: RePEc:kap:jecgro:v:14:y:2009:i:4:p:287-312

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Web page: http://www.springerlink.com/link.asp?id=102931

Related research

Keywords: Dual economy; Unified growth; Endogenous fertility; O11; O13; O17; O41; Q10;

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Citations

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Cited by:
  1. Rabah Arezki & Klaus Deininger & Harris Selod, 2012. "What Drives the Global Land Rush?," OxCarre Working Papers 072, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  2. Markus Eberhardt & Francis Teal, . "Aggregation versus Heterogeneity in Cross-Country Growth Empirics," Discussion Papers 11/08, University of Nottingham, CREDIT.
  3. Markus Eberhardt & Dietrich Vollrath, 2014. "Agricultural Technology and Structural Change," CSAE Working Paper Series 2014-21, Centre for the Study of African Economies, University of Oxford.
  4. Dietrich Vollrath, 2012. "Land tenure, population, and long-run growth," Journal of Population Economics, Springer, vol. 25(3), pages 833-852, July.
  5. Vollrath, Dietrich, 2014. "The efficiency of human capital allocations in developing countries," Journal of Development Economics, Elsevier, vol. 108(C), pages 106-118.
  6. Yuki, Kazuhiro, 2012. "Education, inequality, and development in a dual economy," MPRA Paper 39062, University Library of Munich, Germany.
  7. Trevor Tombe, 2010. "The Missing Food Problem: How Low Agricultural Imports Contribute to International Income and Productivity Differences," Working Papers tecipa-416, University of Toronto, Department of Economics.
  8. Lavopa, Alejandro, 2011. "The impact of sectoral heterogeneities in economic growth and catching up: Empirical evidence for Latin American manufacturing industries," MERIT Working Papers 075, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  9. Jeanet Sinding Bentzen & Nicolai Kaarsen & Asger Moll Wingender, 2013. "The Timing of Industrialization across Countries," Discussion Papers 13-17, University of Copenhagen. Department of Economics.
  10. Trevor Tombe, 2014. "The Missing Food Problem," Working Papers 2014-35, Department of Economics, University of Calgary, revised 10 Jun 2014.
  11. Dalgaard, Carl-Johan & Strulik, Holger, 2012. "Physiology and Development: Why the West is Taller than the Rest," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Leibniz Universität Hannover dp-494, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  12. Deininger, Klaus & Byerlee, Derek, 2011. "The rise of large farms in land abundant countries : do they have a future ?," Policy Research Working Paper Series 5588, The World Bank.
  13. Klaus Deininger & Denys Nizalov & Sudhir K Singh, 2013. "Are mega-farms the future of global agriculture? Exploring the farm size-productivity relationship for large commercial farms in Ukraine," Discussion Papers 49, Kyiv School of Economics.
  14. Deininger, Klaus & Nizalov, Denys & Singh, Sudhir K, 2013. "Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship," Policy Research Working Paper Series 6544, The World Bank.

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