The dynamics of structural heterogeneity and styles of development: a formalization of Aníbal Pinto’s thinking

In this article, Aníbal Pinto’s concepts of structural heterogeneity and styles of development are formalized using a two-sector model with endogenous labour reallocation. Unlike the tradition of Lewis and Fei-Ranis, which assumes dualism leads to guaranteed convergence, Pinto’s approach —formalized herein— positions structural heterogeneity as a persistent feature rooted in the systemic tradition of Boeke, Myrdal and Itagaki. The stability analysis shows that the equilibrium between concentrated accumulation and intersectoral production linkages determines the overall dynamic regime. When linkages dominate, the system converges to a stable interior equilibrium (virtuous circle); when concentrated accumulation dominates, it gives rise to bistability and hysteresis (a vicious circle). This finding, presented as Pinto’s bifurcation theorem, allows styles of development to be interpreted as qualitatively distinct structural regimes and policy implications to be derived with a view to inducing transitions between them.