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We divide countries into agrarian, dual and economically mature groups, as suggested by Fei and Ranis (1966), to account for the different phases of development, and extend the typology for dual economies with a sub-division between beginner, intermediate and advanced.
The traditional service sector has indeed become the main employer, a sign of structural change, but it provides a negative contribution to the overall productivity in the agrarian economies of Africa, in six out of the nine dual economies of Latin America, and in one out of six economies of Asia (1).
Among those who recognised the reality of involuntary unemployment were John Maynard Keynes and Arthur Lewis, who incorporated it into his model of dual economies, in which urban wages do not respond to labour-supply gluts and remain above what rural workers earn.
In many developing countries a new trend has emerged that is similar to the so-called dual economies of former colonies.
Pertierra, a researcher studying consumer culture, media, and domestic life in Cuba and Central America, presents this volume on scarcity and dual economies in Cuban culture.
The current strength of the agricultural sector and its impact on provincial businesses, compared to the tightening up across the rest of the business sector, serves to remind us of the dual economies that now operate in New Zealand.
Townsend believes that rural prosperity will continue, driven by dairy, lamb and beef sales, but the conundrum of the dual economies is that ultimately there will be pain caused by the difficulties that the non-agrarian sector is experiencing.
High concentrations of ethnic or immigrant populations may also contribute to the existence of dual economies.
Illinois and Minnesota are good examples of states with dual economies.
These features are quite different from the dual economies in other developing countries.
I am also surprised by the author's conclusion that the Lewis (1954) model does not work well in dual economies (segmented markets), such as Indonesia, where there is high government intervention.
An article introducing the idea of a dual economy "The Possibility of Dual Economies in South Dakota" was first published in the South Dakota Business Review, March 1984.
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