Definition: Dual Economies

Dual Economies - "these economies, most lowincome countries, and some middle-income countries, that have a traditional, peasant agricultural sector, producing primarily for family or village subsistence, with little or no reproducible capital, using technologies handed down for generation, and having a low marginal productivity of labor, alongside a modern sector. In contrast to the traditional sector, the labor-intensive peasant agriculture (together with semisubsistence agriculture, petty trade, and cottage industry) is a capital-intensive enclave consisting of modern manufacturing and processing operations, mineral extraction, and plantation agriculture, which produces for the market, uses reproducible capital and new technology, and hires labor commercially." - source: Economic Development 4th Edition by E. Wayne Nafziger

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