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Dual economy models: a primer for growth economists

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Author Info
Jonathan Temple ()

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Abstract

This paper argues that dual economy models deserve a central place in the analysis of growth in developing countries. The paper shows how these models can be used to analyze the output losses associated with factor mis-allocation, aggregate growth in the presence of factor market distortions, international differences in sectoral productivity, and the potential role of increasing returns to scale. Above all, small-scale general equilibrium models can be used to investigate the interactions between growth and labour markets, to shed new light on the origins of pro-poor and labour-intensive growth, and to explore the role of the informal sector.

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Publisher Info
Paper provided by Department of Economics, University of Bristol, UK in its series Bristol Economics Discussion Papers with number 05/574.

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Length: 46 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:bri:uobdis:05/574

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Related research
Keywords: dual economies; factor market distortions; wage differentials; informal sector.;

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Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

Cited by:
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  1. Eberhardt, Markus & Teal, Francis, 2009. "Econometrics for Grumblers: A New Look at the Literature on Cross-Country Growth Empirics," MPRA Paper 15813, University Library of Munich, Germany. [Downloadable!]
  2. Takeho Nakamura, 2007. "Wage inequality and welfare effects of domestic technological progress: a dual economy approach," Economics Bulletin, AccessEcon, vol. 15(22), pages 1-14. [Downloadable!]
  3. Mathan Satchi & Jonathan Temple, 2006. "Growth and labour markets in developing countries," Bristol Economics Discussion Papers 06/581, Department of Economics, University of Bristol, UK. [Downloadable!]
    Other versions:
  4. Stefania P. S. Rossi & Guido Pellegrini & Ornella Tarola, 2006. "Macroeconometric modelling for evaluationg the policy impact on growth in dualistic countries: the case of Southern Italian Regions," Vienna Economics Papers 0607, University of Vienna, Department of Economics. [Downloadable!]
  5. Vollrath, Dietrich, 2008. "The Dual Economy in Long-run Development," MPRA Paper 12293, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  6. Jonathan Temple, 2006. "Aggregate Production Functions and Growth Economics," International Review of Applied Economics, Taylor and Francis Journals, vol. 20(3), pages 301-317, July. [Downloadable!] (restricted)
  7. Mathan Satchi & Jonathan Temple, 2009. "Labor Markets and Productivity in Developing Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 183-204, January. [Downloadable!] (restricted)
    Other versions:
  8. Steven Poelhekke, 2008. "Urban Growth, Uninsured Risk, and the Rural Origins of Aggregate Volatility," Economics Working Papers ECO2008/26, European University Institute. [Downloadable!]
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