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Some Problems in the Analysis of the Dual Economy

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  • STEPHEN R. LEWIS, JR.

    (Institute of Development Economics, Karachi.)

Abstract

There is a good deal of confusion in the literature on the dual economy stemming from i) the frequent failure to specify assumptions made about the level and characteristics of unemployment and underemployment, and ii) the difficulties of building institutional rigidities into neoclassical allocation-models without producing results which are indeterminate or lacking in generality. This paper sets out some of the major assumptions made in various discussions of the dual economy, examines the effects of these assumptions on production and factor-use decisions in each sector and on the product-transformation locus for the economy, and suggests some related problems of policy analysis in the dual economy

Suggested Citation

  • Stephen R. Lewis, Jr., 1963. "Some Problems in the Analysis of the Dual Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 3(4), pages 527-546.
    • Handle: RePEc:pid:journl:v:3:y:1963:i:4:p:527-546
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    File URL: http://www.pide.org.pk/pdf/PDR/1963/Volume4/527-546.pdf
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    Cited by:

    1. Muhammad Irfan, 2010. "A Review of the Labour Market Research at PIDE 1957-2009," PIDE Books, Pakistan Institute of Development Economics, number 2010:1 edited by Rashid Amjad & Aurangzeb A. Hashmi.

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