Physical Capital in Dual Economies

  • Sibabrata Das
  • Alex Mourmouras
  • Peter Rangazas
Part of the Springer Texts in Business and Economics book series (STBE)


In this chapter we shift attention to industrialization and economic growth in dual economies. We focus again on the consequence of missing land markets, a common characteristic of developing economies that was documented in the previous chapter. Here we examine the connections between land ownership, saving, and physical capital formation.


  1. Acemoglu D, Robinson J (2012) Why nations fail. The origins of power, prosperity, and poverty. Crown Publishers, New York.CrossRefGoogle Scholar
  2. Alston L, Hatton T (1991) The earnings gap between agricultural and manufacturing laborers, 1925–1941. Journal of economic history 51(1):83–99.CrossRefGoogle Scholar
  3. Arbatli, C (2016) Trade and income growth in the Ottoman Empire: Assessing the role of volatility and trend growth in the terms of trade. Eurasian Economic Review, 6, 173–194.CrossRefGoogle Scholar
  4. Banerjee A, Duflo E (2011) Poor economics. Public Affairs, New York.Google Scholar
  5. Burgess R, Stern N (1993) Taxation and development. Journal of economic literature 31(2):762–830.Google Scholar
  6. Blattman C, Hwang J, Williamson J (2007) The impact of terms of trade on economic development in the periphery, 1870–1939: Volatility and secular change. Journal of development economics 82(1):156–179.CrossRefGoogle Scholar
  7. Carter S, Ransom R, Sutch R (2003) Family matters: The life-cycle transition and the unparalleled fertility decline in antebellum America. In: Guinnane, T Sundstrom W, Whately W (eds) History matters: Essays on economic growth, technology, and demographic change. Stanford University Press, Stanford, California.Google Scholar
  8. Caselli, F, Coleman W (2001) The US structural transformation and regional convergence: A reinterpretation. Journal of political economy 109(3):584–616.CrossRefGoogle Scholar
  9. Cavalcanti T, Mohaddes K, Raissi M (2012) Commodity price volatility and the sources of growth. IMF working paper 12/12. International Monetary Fund, Washington DC.Google Scholar
  10. Clark G (2007) A farewell to alms. Princeton University Press, Princeton, New Jersey.CrossRefGoogle Scholar
  11. Collier P, Radwan S, Wangwe S (1986) Labour and poverty in rural Tanzania: Ujameen and rural development in the United Republic of Tanzania. Oxford University Press, New York.Google Scholar
  12. Cunningham H (1990) The employment and unemployment of children in England c. 1680–1851. Past and present 126:115–150.CrossRefGoogle Scholar
  13. David P (1967) The growth of real product in the United States before 1840: New evidence, controlled conjectures. Journal of economic history 27(2):151–197.CrossRefGoogle Scholar
  14. Deninger K, Squire L (1997) Explaining agricultural and agrarian policies in developing countries. Journal of economic literature 35(4):1958–2005.Google Scholar
  15. de Vries J, van de Woude A (1999) The first modern economy. Cambridge University Press, Cambridge, UK.Google Scholar
  16. Eaton J (1987) A dynamic specific factors model of international trade. Review of Economic Studies 54:325–338.CrossRefGoogle Scholar
  17. Erickson, L, Vollrath D (2004) Dimensions of land inequality and economic development. IMF Working Paper 158. International Monetary Fund, Washington DC.Google Scholar
  18. Galor O, Mountford A (2006) Trade and the great divergence: The family connection. American economic review 96(2):299–303.CrossRefGoogle Scholar
  19. Galor O, Mountford A (2008) Trading population for productivity: Theory and evidence. Review of economic studies 75(4):1143–1179.CrossRefGoogle Scholar
  20. Galor O, Moav O, Vollrath D (2009) Inequality in landownership, the emergence of human capital promoting institutions, and the great divergence. Review of economic studies 76(1):143–179.CrossRefGoogle Scholar
  21. Goldin C, Sokoloff K (1984) The relative productivity hypothesis of industrialization: The American case 1820–1850. Quarterly journal of economics 99(3):461–490.CrossRefGoogle Scholar
  22. Gollin D (2002) Getting income shares right. Journal of political economy 110(2):458–474.CrossRefGoogle Scholar
  23. Gollin D (2014) The Lewis model: A sixty year retrospective. Journal of economic perspectives 28(3):71–88.CrossRefGoogle Scholar
  24. Gollin D, Lagakos D, Waugh M (2014) The agricultural productivity gap. Quarterly journal of economics 129(2):939–993.CrossRefGoogle Scholar
  25. Gordon R, Li W (2005) Tax structure in developing countries: Many puzzles and a possible explanation. NBER working paper 11267. National Bureau of Economic Research, Cambridge, Massachusetts.Google Scholar
  26. Haddard M, Lim J, Pancaro C, Saborowski C (2012) Trade openness and growth volatility. ECB working paper 1491. European Central Bank, Frankfurt.Google Scholar
  27. Hatton T, Williamson J (1992) What explains wages between the farm and city? Exploring the Todaro model with American evidence, 1890–1941. Economic development and cultural change 40:267–294CrossRefGoogle Scholar
  28. Henderson V (2003) The urbanization process and economic growth: The so-what question. Journal of economic growth 8(1):47–71.CrossRefGoogle Scholar
  29. Horrell S, Humphries J (1995) The exploitation of little children: Child labor and the family in the industrial revolution. Explorations in economic history 32(4):485-516.CrossRefGoogle Scholar
  30. Issawi C (1980) The economic history of Turkey 1800–1914. Chicago University Press, Chicago.Google Scholar
  31. Jha R (2007) Fiscal policy in developing countries: A synoptic view. Australia South Asia Research Centre working paper 2007/01.Google Scholar
  32. Jones R (1971) A three factor model in theory, trade and history. In Bhagwati J et al. (eds) Trade, balance of payments, and growth. North Holland, Amsterdam.Google Scholar
  33. Kendrick J (1961) Productivity trends in the United States. Princeton University Press, Princeton, New Jersey.Google Scholar
  34. La Porta R, Shleifer A (2014) Informality and development. Journal of Economic Perspectives 28(3):109–126.CrossRefGoogle Scholar
  35. Lewis A (1954) Development with unlimited supplies of labor. The Manchester School 22:92–139.CrossRefGoogle Scholar
  36. Libecap G (2007) Property rights and federal land policy. In: Fishback P (ed) Government and the American economy. University of Chicago Press, Chicago.Google Scholar
  37. Lindert P (2004) Growing public. Cambridge University Press, Cambridge, UK.CrossRefGoogle Scholar
  38. Margo R (2000) Wages and labor markets in the United States 1820–1860. University of Chicago Press, Chicago.Google Scholar
  39. Mourmouras A, Rangazas P (2009a) Reconciling Kuznets and Habbakuk in a unified growth model. Journal of economic growth 14(2):149–181.CrossRefGoogle Scholar
  40. Mourmouras A, Rangazas P (2009b) Fiscal policy and economic development. Macroeconomic dynamics 13(4):450–476.CrossRefGoogle Scholar
  41. Mourmouras A, Rangazas P (2014) Deindustrialization and growth in the Ottoman empire. Working paper, IUPUI, Indianapolis.Google Scholar
  42. Pamuk S (2006) Estimating economic growth in the Middle East since 1820. Journal of economic history 66(1):809–828.Google Scholar
  43. Pamuk S, Williamson J (2011) Ottoman de-industrialization, 1800–1913: Assessing the magnitude, impact, and response. Economic history review 64:159–184.CrossRefGoogle Scholar
  44. Peltzman S (1980) The growth of government. Journal of law and economics 23(2):209–287.CrossRefGoogle Scholar
  45. Samuelson P (1971) Ohlin was right. Swedish Journal of Economics 73:365–384.CrossRefGoogle Scholar
  46. Stotsky J, WoldeMarian A (1997) Tax effects in sub-Saharan Africa. IMF working paper 97/107. International Monetary Fund, Washington DC.Google Scholar
  47. Tanzi V (1991) Structural factors and tax revenue in developing countries: A decade of evidence. International Monetary Fund, Washington DC.Google Scholar
  48. Tanzi V, Schuknecht L (2000) Public spending in the 20th century. Cambridge University Press, New York.CrossRefGoogle Scholar
  49. Quataert D (1993) Ottoman manufacturing in the age of the industrial revolution. Cambridge University Press, Cambridge, UK.Google Scholar
  50. Vollrath D (2014) The efficiency of human capital allocations in developing countries. University of Houston Working Paper 201307956.Google Scholar
  51. Williamson J (2011) Trade and poverty: When the third world fell behind. MIT Press, Cambridge, Massachusetts.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Sibabrata Das
    • 1
  • Alex Mourmouras
    • 2
  • Peter Rangazas
    • 3
  1. 1.Strategy, Policy & Review DepartmentInternational Monetary FundWashington, DCUSA
  2. 2.International Monetary FundWashington, DCUSA
  3. 3.Department of EconomicsIndiana University-Purdue UniversityIndianapolisUSA

Personalised recommendations