chapter  10
Dual economy models with fixed terms-of-trade
WithAmitava Bose
Pages 10

This chapter examines the linkages between a traditional and a modern sector in a dual economy model with fixed inter-sectoral terms of trade. It shows that when the terms of trade are given, the modern sector may grow faster, but it cannot be a ‘leading sector’ as its growth rate, in essence, is determined by that of the traditional sector.