- Dual economy
Part of a series on Economic systems Ideological systems Anarchist · Capitalist
Communist · Corporatist
Fascist · Georgist
Islamic · Laissez-faire
Market socialist · (Neo-) Mercantilist
Protectionist · Socialist
Systems Closed (Autarky) · Digital
Dual · Gift · Informal
Market · Mixed · Natural
Open · Planned · Robinson Crusoe economy · Subsistence
Underground · Virtual
Sectors Marketization · Expropriation
Other types of economies Anglo-Saxon · Feudal
Global · Hunter-gatherer
Newly industrialized country
Palace · Plantation
Post-capitalist · Post-industrial
Social market · Socialist market
Token · Traditional
Transition · Barter
State capitalist · State-directed · State monopoly capitalist
A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand. The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy.
Dual economies are common in less developed countries, where one sector is geared to local needs and another to the global export market. Dual economies may exist within the same sector, for example a modern plantation or other commercial agricultural entity operating in the midst of traditional cropping systems. Sir Arthur Lewis used the concept of a dualistic economy as the basis of his labour supply theory of rural-urban migration. Lewis distinguished between a low-income, rural, subsistence sector with surplus population, and an expanding urban capitalist sector. The urban economy absorbed labour from rural areas (holding down urban wages) until the rural surplus was exhausted.
A World Bank comparison of sectoral growth in Cote d'Ivoire, Ghana and Zimbabwe since 1965 provided evidence against the existence of a basic dual economy model. The research implied that a positive link existed between growth in industry and growth in agriculture. The authors argued that for maximum economic growth, policymakers should have focused on agriculture and services as well as industrial development.
- ^ a b H.W. Singer (1996). Adam Kuper and Jessica Kuper. ed. The Social Science Encyclopedia. London: Routledge. p. 202. ISBN 04151207940.
- ^ "Sector growth and the dual economy model - evidence from Cote d'Ivoire, Ghana, and Zimbabwe, Volume 1". The World Bank. http://econ.worldbank.org/external/default/main?pagePK=64165259&theSitePK=469372&piPK=64165421&menuPK=64166093&entityID=000094946_99092004265544.
J.H. Boeke (1953) Economics and Economic Policy of Dual Societies, New York: Institute of Pacific Relations.
Lewis, W.A. (1954) 'Economic development with unlimited supply of labour', The Manchester School.
Wikimedia Foundation. 2010.
Look at other dictionaries:
dual economy — UK US noun [C] ECONOMICS ► an economic system that consists of two very different parts: »The country continues to exhibit the features of a dual economy, with a relatively dynamic oil export sector contrasting with sluggish growth in the rest of … Financial and business terms
dual economy — a country having one or two core areas which far outstrip the development of the surrounding peripheral area … Geography glossary
dual economy — See economic dualism ; internal colonialism ; labour market ; labour market segmentation … Dictionary of sociology
dual economy — existence of different economies in rural and urban areas whereas one is poor and the other has higher wages and more advanced technology … English contemporary dictionary
Economy of Cuba — Flag Rank 89th Currency Cuban peso (CUP) = 100 centavos and Cuban Convertible Peso (CUC) = 24 CUP … Wikipedia
Dual-sector model — This article is about the economic model. For the diagram representing atomic bonding, see Lewis structure. Sir W. Arthur Lewis Sir William Arthur Lewis, official Nobel Prize photo … Wikipedia
economy — ▪ I. economy e‧con‧o‧my 1 [ɪˈkɒnəmi ǁ ɪˈkɑː ] noun economies PLURALFORM 1. [countable] ECONOMICS the system by which a country s goods and services are produced and used, or a country considered in this way: • the transformation from a centrally… … Financial and business terms
Economy of Singapore — Infobox Economy country = Singapore width = 300px caption = Notes of the Singapore dollar currency = Singapore dollar (SGD) year = 1 April 31 March organs = WTO, APEC rank = 48th gdp = $222.7 billion (2007 est.) growth = 7.5% (2007) per capita =… … Wikipedia
Economy of Malaysia — Fixed exchange rates 1 Ringgit = 100 sen Fiscal year Calendar year … Wikipedia
Economy of Thailand — Rank 30th (nominal) / 23rd (PPP) Currency Thai baht (THB) … Wikipedia