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The Dual Economy in Long-run Development

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  • Vollrath, Dietrich

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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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 12293.

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Date of creation: 18 Dec 2008
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Handle: RePEc:pra:mprapa:12293

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Keywords: Dual economy; unified growth; endogenous fertility;

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References

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Citations

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Cited by:
  1. Vollrath, Dietrich, 2014. "The efficiency of human capital allocations in developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 108(C), pages 106-118.
  2. Harris Selod & Klaus W. Deininger & Rabah Arezki, 2011. "What Drives the Global Land Rush?," IMF Working Papers, International Monetary Fund 11/251, International Monetary Fund.
  3. Trevor Tombe, 2012. "The Missing Food Problem," Working Papers, Wilfrid Laurier University, Department of Economics tt0060, Wilfrid Laurier University, Department of Economics, revised 2012.
  4. Deininger, Klaus & Byerlee, Derek, 2011. "The rise of large farms in land abundant countries : do they have a future ?," Policy Research Working Paper Series, The World Bank 5588, The World Bank.
  5. Yuki, Kazuhiro, 2012. "Education, inequality, and development in a dual economy," MPRA Paper, University Library of Munich, Germany 39062, University Library of Munich, Germany.
  6. 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, The World Bank 6544, The World Bank.
  7. Francis Teal & Markus Eberhardt, 2010. "Aggregation versus Heterogeneity in Cross-Country Growth Empirics," Economics Series Working Papers, University of Oxford, Department of Economics CSAE WPS/2010-32, University of Oxford, Department of Economics.
  8. Markus Eberhardt & Dietrich Vollrath, 2014. "Agricultural Technology and Structural Change," CSAE Working Paper Series, Centre for the Study of African Economies, University of Oxford 2014-21, Centre for the Study of African Economies, University of Oxford.
  9. Dalgaard, Carl-Johan & Strulik, Holger, 2012. "Physiology and Development: Why the West is Taller than the Rest," Hannover Economic Papers (HEP), Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät dp-494, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
  10. 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, Kyiv School of Economics 49, Kyiv School of Economics.
  11. Dietrich Vollrath, 2012. "Land tenure, population, and long-run growth," Journal of Population Economics, Springer, Springer, vol. 25(3), pages 833-852, July.
  12. Derek Byerlee, 2014. "The Fall and Rise Again of Plantations in Tropical Asia: History Repeated?," Land, MDPI, Open Access Journal, MDPI, Open Access Journal, vol. 3(3), pages 574-597, June.
  13. Jeanet Sinding Bentzen & Nicolai Kaarsen & Asger Moll Wingender, 2013. "The Timing of Industrialization across Countries," Discussion Papers, University of Copenhagen. Department of Economics 13-17, University of Copenhagen. Department of Economics.
  14. Lavopa, Alejandro, 2011. "The impact of sectoral heterogeneities in economic growth and catching up: Empirical evidence for Latin American manufacturing industries," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 075, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  15. Trevor Tombe, 2010. "The Missing Food Problem: How Low Agricultural Imports Contribute to International Income and Productivity Differences," Working Papers, University of Toronto, Department of Economics tecipa-416, University of Toronto, Department of Economics.

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