ABSTRACT
The theory of bi-modal production, or "technological dualism," was initially formulated to explain why countries that have experienced a good deal of modernization of production techniques, and spectacular expansion of their modern export sectors, have nonetheless left the bulk of their populations in poverty. The theory of bi-modal production or "technological dualism" was presented as an explanation of underdevelopment in general, but it was quickly recognized that it was also an explanation of regional disparities, or regional dualism, because of the tendency of enterprises using advanced technology to be concentrated in some regions. The theory of regional dualism is derived from the theory of technological dualism. The argument is that poor regions are those in which the traditional sector is concentrated, and rich regions those where the modern sector is concentrated. The historical process of creating rich and poor regions is identical to the process which created the modern and traditional sectors.
