DUAL ECONOMY MODELS: RETROSPECT AND PROSPECT

Authors

  • S. M. R. Kanbur,

    1. Woodrow Wilson School, Invited paper, Princeton University, and Department of Economics, Concordia University
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  • J. McIntosh

    1. Woodrow Wilson School, Invited paper, Princeton University, and Department of Economics, Concordia University
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    • *

      This paper was presented at the ESRC Development Economics Study Group Conference at the University of Warwick in November 1984 and at the Fifth World Congress of the Econometric Society in Boston in 1985. We wish to thank participants of those seminars as well as Nick Stern and David Vines for helpful comments.


ABSTRACT

The paper surveys recent work on dual economy models starting from the famous 1961 Jorgenson paper and ending with some of the new contributions to the literature on North-South trade which have the same analytical structure as the dual economy model. Various models are compared with respect to assumptions about asymmetries, speeds of adjustment and factor immobilities. Two important conclusions are noted: dynamic behaviour is often quite sensitive to the ranking of adjustment speeds and the direction of further research should be toward further disaggregation.

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