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The Dual Economy in Long-run Development

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  • Dietz Vollrath

    ()
    (Department of Economics, University of Houston)

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 demon- strates 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 ine±ciencies of a dual economy and slow down long-run growth.

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File URL: http://www.uh.edu/econpapers/RePEc/hou/wpaper/2008-03.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Houston in its series Working Papers with number 2008-03.

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Length: 28 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:hou:wpaper:2008-03

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Postal: Houston TX 77023
Web page: http://www.uh.edu/class/economics/
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Keywords: Dual economy; unfied growth; endogenous fertility;

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References

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Citations

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Cited by:
  1. Deininger, Klaus & Byerlee, Derek, 2012. "The Rise of Large Farms in Land Abundant Countries: Do They Have a Future?," World Development, Elsevier, vol. 40(4), pages 701-714.
  2. Rabah Arezki & Klaus Deininger & Harris Selod, 2013. "What Drives the Global "Land Rush"?," Economics Series Working Papers OxCarre Research Paper 12, University of Oxford, Department of Economics.
  3. Yuki, Kazuhiro, 2012. "Education, inequality, and development in a dual economy," MPRA Paper 39062, University Library of Munich, Germany.
  4. 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.
  5. 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.
  6. Markus Eberhardt & Francis Teal, 2010. "Aggregation versus Heterogeneity in Cross-Country Growth Empirics," CSAE Working Paper Series 2010-32, Centre for the Study of African Economies, University of Oxford.
  7. 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).
  8. Trevor Tombe, 2012. "The Missing Food Problem," Working Papers tt0060, Wilfrid Laurier University, Department of Economics, revised 2012.
  9. 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.
  10. Dietrich Vollrath, 2012. "Land tenure, population, and long-run growth," Journal of Population Economics, Springer, vol. 25(3), pages 833-852, July.
  11. 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.
  12. 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.

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