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A Growth Model for a Two-Sector Economy with Endogenous Productivity / Codrina Rada.
- Format:
- Book
- Government document
- Author/Creator:
- Rada, Codrina, author.
- Series:
- UN Department of Economic and Social Affairs (DESA) Working Papers, 2520-6656 ; no.44.
- UN Department of Economic and Social Affairs (DESA) Working Papers, 2520-6656 ; no.44
- Language:
- English
- Subjects (All):
- Economic and Social Development.
- Local Subjects:
- Economic and Social Development.
- Physical Description:
- 1 online resource.
- Place of Publication:
- New York : United Nations, 2007.
- System Details:
- text file
- Summary:
- A growth model is developed for an open dual economy. The economy expands due to a higher growth rate of labour productivity in the modern sector through the Kaldor-Verdoorn channel and higher effective demand through a Keynesian channel. The model incorporates a retardation mechanism affecting the slopes of productivity and output growth schedules as labour surplus and economies of scale diminish. A wage or profit-led regime and initial conditions may give rise to: de-industrialization in terms of both output and employment; a growth trap sustaining a situation of structural heterogeneity; or sustainable employment and adequate output and productivity growth.
- Access Restriction:
- Restricted for use by site license.
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