Can policies accelerate the convergence path of dualistic economic growth in a single country, offsetting market failures and making growth transmission channels more efficient? A structural dynamic econometric model, has been set up in order to account for these changes. Three are the main sources of growth playing a role in this context: the “neighbourhood” effect, the interaction between the economic environment and the agents' expectations, and the policy impact on economic take-off. The evidence shows that policies strongly boost economicgrowth of a local area and narrow the gap between the regions of a dual economy.
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number
0607.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Blomstrom, Magnus & Wolff, Edward N., 1997.
"Growth in a dual economy,"
World Development,
Elsevier, vol. 25(10), pages 1627-1637, October.
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