Summary. The dual nature of Africa’s economies implies significant differences in labor productivity across sectors. The implication of these sectoral differences in productivity is that structural changes that reallocate labor from less to more productive sectors can be a potent source of growth in African economies.
What is meant by dual economy?
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. … Dual economies are common in less developed countries, where one sector is geared to local needs and another to the global export market.
Is South Africa a dualistic economy?
Proponents of the dual economy model maintain that South Africa, in its dual economic structures, reflects the global reality. In other words South Africa is a microcosm of the global system.
Why is dual economy important?
The dual economy theory suggests that, prima facie, factor market inefficiencies exist within the economy. This lowers overall productivity and income by allocating too many factors of production to the low productivity sector, typically agriculture.
Which nation economy is dualistic economy?
At present, the Indian economy is characterised by a dualistic economic structure where a modern economy is existing along-with a primitive traditional economy.
Who started a dual economy in India?
We argue that the process of structural transformation of the Indian economy suggested by Lewis started to accelerate with the economic reforms that began in the 1990s and resulted in the emergence of a dual economy.
What is dual economy in newspaper?
Answer: Explanation: 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.