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Petty services, profit‐led growth and rural–urban migration in a developing economy

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  • Gogol Mitra Thakur
  • Subrata Guha

Abstract

This paper develops a structuralist urban dual economy model for a developing economy consisting of a capitalist formal sector and a “petty” or informal service sector. The petty service sector plays an important role in wage determination and capital accumulation in the formal sector. The urban dual economy is situated in the midst of a rural area endowed with generous amount of surplus labour. The rural area augments urban labour supply over time through rural–urban migration. The paper, therefore, incorporates rural–urban migration within a structuralist framework and highlights its implication for growth and structural change in urban spaces of developing economies riddled with persistent formal–informal duality.

Suggested Citation

  • Gogol Mitra Thakur & Subrata Guha, 2019. "Petty services, profit‐led growth and rural–urban migration in a developing economy," Metroeconomica, Wiley Blackwell, vol. 70(1), pages 144-171, February.
    • Handle: RePEc:bla:metroe:v:70:y:2019:i:1:p:144-171
    DOI: 10.1111/meca.12233
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    Cited by:

    1. Joao Paulo A. de Souza & Leopoldo Gómez‐Ramírez, 2021. "Industrialization and skill acquisition in an evolutionary model of coordination failures," Metroeconomica, Wiley Blackwell, vol. 72(4), pages 849-867, November.
    2. Pintu Parui, 2021. "A simple macro‐model of COVID‐19 with special reference to India," Metroeconomica, Wiley Blackwell, vol. 72(4), pages 650-678, November.
    3. Kasturi Sadhu & Saumya Chakrabarti, 2021. "Neo-Dualism: Accumulation, Distress, and Proliferation of a Fissured Informality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 694-724, December.

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