Advertisement

Abstract

Separating sectors in the economy means they have structure — something differs between them. For centuries economists have set up models incorporating sectors with diverse natures — subsistence v. modern, agriculture v. non- agriculture, traded v. non-traded — to ask how they reach balance in the short run and grow over time. Much work on economic development is concerned with such issues. An attempt is made in this review to give the flavour (and some of the substance) of this literature. Its volume is enormous; any summary must be selective at best. The emphasis here is on models with practical relevance to policy issues in the Third World.

Keywords

Total Factor Produc Real Exchange Rate Real Wage Capital Good Capital Formation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ahluwalia, I. J. (1986) ‘Industrial Growth in India: Performance and Prospects’, Journal of Development Economics, vol. 23, pp.1–8.CrossRefGoogle Scholar
  2. Bacha, E. L. (1984) ‘Growth with Limited Supplies of Foreign Exchange: A Reappraisal of the Two-Gap Model’, in Syrquin, M., Taylor, L. and Westphal, L. (eds) Economic Structure and Performance: Essays in Honor of Hollis B. Chenery (New York: Academic Press).Google Scholar
  3. Balassa, B. (1964) ‘The Purchasing-Power Parity Doctrine: A Reappraisal’, Journal of Political Economy, vol. 72, pp. 584–96.CrossRefGoogle Scholar
  4. Bartlett, W. (1983) ‘On the Dynamic Instability of Induced-Migration Unemployment in a Dual Economy’, Journal of Development Economics, vol. 13, pp. 85–95.CrossRefGoogle Scholar
  5. Basu, K. (1984) The Less Developed Economy (Oxford: Basil Blackwell).Google Scholar
  6. Baumol, W. J. (1967) ‘Macroeconomics of Unbalanced Growth: The Anatomy of the Urban Crisis’, American Economic Review, vol. 57, pp. 185–96.Google Scholar
  7. Boutros-Ghali, Y. (1981) Essays on Structuralism and Development, Department of Economics, Massachusetts Institute of Technology, unpublished PhD dissertation.Google Scholar
  8. Buffie, E. (1986) ‘Commercial Policy, Growth, and the Distribution of Income in a Dynamic Trade Model’, Department of Economics, University of Pennsylvania.Google Scholar
  9. Bukharin, N. I. (1971) Economics of the Transformation Period (New York: Bergman Publishers).Google Scholar
  10. Burns, A. F. (1934) Production Trends in the United States since 1870 (New York: National Bureau of Economic Research).Google Scholar
  11. Cairns, J. E. (1921) ‘The Australian Episode’, reprinted from an 1859 paper in F. W. Taussig (ed.) Selected Readings in International Trade and Tariff Problems (New York: Ginne Co).Google Scholar
  12. Chakravarty, S. (1984) ‘India’s Development Strategy for the 1980’s’, Economic and Political Weekly, vol. 21, pp. 845–52.Google Scholar
  13. Chenery, H. B. (1975) ‘The Structuralist Approach to Development Policy’, American Economic Review (Papers and Proceedings), vol. 65, pp. 310–6.Google Scholar
  14. Chenery, H. B. (1979) Structural Change and Development Policy (New York: Oxford University Press).Google Scholar
  15. Chenery, H. B. and Bruno, M. (1962) ‘Development Alternatives in an Open Economy: The Case of Israel’, Economic Journal, vol. 72, pp. 79–103.CrossRefGoogle Scholar
  16. Chenery, H. B., Shishido, S. and Watanabe, T. (1962) ‘The Pattern of Japanese Growth, 1914–1954’, Econometrica vol. 30, pp. 98–139.CrossRefGoogle Scholar
  17. Chenery, H. B., and Syrquin, M. (1986) ‘Typical Patterns of Transformation’, in Chenery, H. B., Robinson, S. and Syrquin, M. Industrialization and Growth (New York: Oxford University Press).Google Scholar
  18. Chichilnisky, G. (1981) ‘Terms of Trade and Domestic Distribution: Export-Led Growth with Abundant Labor’, Journal of Development Economics, vol. 8, pp. 163–92.CrossRefGoogle Scholar
  19. Clark, C. (1957) Conditions of Economic Progress (3rd edn) (London: Macmillan).Google Scholar
  20. Clark, P. B. (1975) ‘Intersectoral Consistency and Macroeconomic Planning’, in Blitzer, C., Clark, P. and Taylor, L. (eds) Economy-Wide Models and Development Planning (New York: Oxford University Press).Google Scholar
  21. Corden, W. M. (1984) ‘Booming Sector and Dutch Disease Economics: Survey and Consolidation’, Oxford Economic Papers, vol. 36, pp. 359–80.Google Scholar
  22. Dixit, A. (1973) ‘Models of Dual Economies’, in Mirrlees, J. A. and Stern, N. H. (eds) Models of Economic Growth (New York: Wiley).Google Scholar
  23. Domar, E. (1957) ‘A Soviet Model of Growth’, in Essays in the Theory of Economic Growth (New York: Oxford University Press).Google Scholar
  24. Dutt, A. (1984) ‘Stagnation, Income Distribution, and Monopoly Power’, Cambridge Journal of Economics, vol. 8, pp. 25–40.CrossRefGoogle Scholar
  25. Eckaus, R. (1955) ‘The Factor-Proportions Problem in Underdeveloped Areas’, American Economic Review, vol. 45, pp. 539–65.Google Scholar
  26. Eckaus, R. and Parikh, K. (1968) Planning for Growth: Multisectoral, Intertemporal Models Applied to India (Cambridge. Mass.: MIT Press).Google Scholar
  27. Ellman, M. (1975) ‘Did the Agricultural Surplus Provide the Resources for the Increase in Investment in the USSR during the First Five Year Plan?’ Economic Journal, vol. 85, pp. 844–64.CrossRefGoogle Scholar
  28. Fei, J. C. H. and Ranis, G. (1964) Development of the Labor Surplus Economy, (Homewood, Ill.: Irwin).Google Scholar
  29. Findlay, R. (1971) ‘The Foreign Exchange Gap’, in Bhagwati, J. N. et al. (eds) Trade, Balance of Payments and Growth: Papers in International Economics in Honor of Charles P. Kindleberger (Amsterdam: North-Holland).Google Scholar
  30. Foley, D. (1986) Money, Accumulation, and Crisis (New York: Harwood Academic Publishers).Google Scholar
  31. Furtado, C. (1972) Analise do ‘Modelo’ Brasileiro (Rio de Janeiro: Civilizaçāo Brasileira).Google Scholar
  32. Gerschenkron, A. (1951) A Dollar Index of Soviet Machinery Output, 1927–28 to 1937 (Santa Monica, CA: RAND Corporation).Google Scholar
  33. Gerschenkron, A. (1962) Economic Backwardness in Historical Perspective (Cambridge, Mass.: Harvard University Press).Google Scholar
  34. Harris, J. R. and Todaro, M. P. (1970) ‘Migration, Unemployment, and Development: A Two-Sector Analysis’, American Economic Review, vol. 60, pp. 126–42.Google Scholar
  35. Hawkins, D. (1948) ‘Some Conditions of Macroeconomic Stability’, Econometrica, vol. 16, pp. 309–22.CrossRefGoogle Scholar
  36. Hirschman, A. O. (1958) The Strategy of Economic Development (New Haven, Conn.: Yale University Press).Google Scholar
  37. Hoffman, W. G. (1958) The Growth of Industrial Economies (Manchester: Manchester University Press).Google Scholar
  38. Houthakker, H. S. (1976) ‘Disproportional Growth and the Intersectoral Distribution of Income’, in Cramer, J. S., Heertje, A. and Venekamp, P. (eds) Relevance and Precision: Essays in Honor of Pieter de Wolff (Amsterdam: North-Holland).Google Scholar
  39. Jorgenson, D. W. (1961) ‘The Development of a Dual Economy’, Economic Journal, vol. 71, pp. 309–34.CrossRefGoogle Scholar
  40. Jorgenson, D. W. (1967) ‘Surplus Agricultural Labor and the Development of a Dual Economy’, Oxford Economic Papers, vol. 19, pp. 288–312.Google Scholar
  41. Kaldor, N. (1955) ‘Alternative Theories of Distribution’, Review of Economic Studies, vol. 23, pp. 83–100.CrossRefGoogle Scholar
  42. Kaldor, N. (1976) ‘Inflation and Recession in the World Economy’, Economic Journal, vol. 86, pp. 703–14.CrossRefGoogle Scholar
  43. Kalecki, M. (1971) Selected Essays on the Dynamics of the Capitalist Economy (New York: Cambridge University Press).Google Scholar
  44. Kalecki, M. (1976) Essays in Developing Economies (London: Harvester Press).Google Scholar
  45. Kanbur, S. M. R. and McIntosh, J. (1986) ‘Dual Economy Models: Retrospect and Prospect’, Department of Economics, University of Essex.Google Scholar
  46. Kaneda, H. (1986) ‘Rural Resource Mobility and Intersectoral Balance in Early Modern Growth’, Chapter 17 in this volume.Google Scholar
  47. Kuznets, S. S. (1955) ‘Economic Growth and Income Inequality’, American Economic Review, vol. 45, pp. 1–28.Google Scholar
  48. Kuznets, S. S. (1966) Modem Economic Growth: Rate, Structure, and Spread (New Haven, Conn.: Yale University Press).Google Scholar
  49. Lele, U. and Mellor, J. W. (1981) ‘Technical Change, Distributive Bias and Labor Transfer in a Two- Sector Economy’, Oxford Economic Papers, vol. 33, pp. 426–41.Google Scholar
  50. Lewis, W. A. (1954) ‘Economic Development with Unlimited Supplies of Labor’, Manchester School of Economics and Social Studies, vol. 22, pp. 139–91.CrossRefGoogle Scholar
  51. Lewis, W. A. (1958) ‘Unlimited Labor: Further Notes’, Manchester School of Economics and Social Studies, vol. 26, pp. 1–32.CrossRefGoogle Scholar
  52. Lluch, C. (1977) ‘Theory of Development in Dual Economies: A Survey’, Development Research Center, World Bank.Google Scholar
  53. Londono, J. L. (1985) ‘Ahorro y Gasto en una Economia Heterogena: El Rol Macroeconomico del Mercado de Alimentos’ (Bogota: FEDESAR-ROLLO).Google Scholar
  54. Lustig, N. (1980) ‘Underconsumption in Latin American Economic Thought: Some Considerations’, Review of Radical Political Economics, vol. 12, pp. 35–43.CrossRefGoogle Scholar
  55. Luxemburg, R. (1968) The Accumulation of Capital (New York: Monthly Review Press).Google Scholar
  56. Mahalanobis, P. C. (1953) ‘Some Observations on the Process of Growth of National Income’, Sankhya, vol. 12, pp. 307–12.Google Scholar
  57. McCarthy, F. D. and Taylor, L. (1980) ‘Macro Food Policy Planning: A General Equilibrium Model for Pakistan’, Review of Economics and Statistics, vol. 62, pp. 107–21.CrossRefGoogle Scholar
  58. McCarthy, F. D., Taylor, L. and Talati, C. H. (1987) ‘Trade Patterns in Developing Countries, 1964–82’ Journal of Development Economics, forthcoming.Google Scholar
  59. Mitra, A. (1977) Terms of Trade and Class Relations (London: Frank Cass).Google Scholar
  60. Nayyar, D. (1978) ‘Industrial Development in India; Some Reflections on Growth and Stagnation’, Economic and Political Weekly, vol. 12, pp. 1265–78.Google Scholar
  61. Nurkse, R. (1953) Problems of Capital Formation in Underdeveloped Countries (Oxford: Basil Blackwell).Google Scholar
  62. Ocampo, J. A. (1986) ‘New Developments in Trade Theory and LDCs’, Journal of Development Economics, vol. 22, pp. 129–70.CrossRefGoogle Scholar
  63. Pasinetti, L. L. (1981) Structural Change and Economic Growth (New York: Cambridge University Press).Google Scholar
  64. Preobrazhenski, E. (1965) The New Economics (Oxford: Clarendon Press).Google Scholar
  65. Quisumbing, M. A. R. and Taylor, L. (1986) ‘Resource Transfers from Agriculture’, in The Balance Between Industry and Agriculture in Economic Development, vol.3, Sukhamoy Chahravaty (ed.) Manpower and Transfers (London: Macmillan, 1988).Google Scholar
  66. Rattso, J. (1986) ‘Macroadjustments in a Dual Economy when the Domestic Terms of Trade Are Controlled’, Institute of Economics, University of Trondheim.Google Scholar
  67. Roemer, J. (1982) A General Theory of Exploitation and Class (Cambridge, Mass.: Harvard University Press).CrossRefGoogle Scholar
  68. Rosenstein-Rodan, P. N. (1943) ‘Problems of Industrialization in Eastern and South-Eastern Europe’, Economic Journal, vol. 53, pp. 202–11.CrossRefGoogle Scholar
  69. Rosenstein-Rodan, P. N. (1961) ‘Notes on the Theory of the Big Push’, in Ellis, H. S. and Wallich, H. C. (eds) Economic Development in Latin America (New York: St Martin’s Press).Google Scholar
  70. Rothschild, E. (1986) ‘A Divergence Hypothesis’, Journal of Development Economics, vol. 23, pp. 205–26.CrossRefGoogle Scholar
  71. Rothschild, E. (1987) ‘An Extramediate Matrix and other Adjustments’ Program in Science, Technology and Society, Massachusette Institute of Technology.Google Scholar
  72. Rybczynski, T. M. (1955) ‘Factor Endowment and Relative Commodity Prices’, Economica, vol. 22, pp. 336–41.CrossRefGoogle Scholar
  73. Sah, R. K. and Stiglitz, J. (1984) ‘The Economics of Price Scissors’, American Economic Review, vol. 74, pp. 125–38.Google Scholar
  74. Salter, W. E. G. (1959) ‘Internal and External Balance: The Role of Price and Expenditure Effects’, Economic Record, vol. 35, pp. 226–38.CrossRefGoogle Scholar
  75. Schultz, T. W. (1964) Transforming Traditional Agriculture (New Haven, Conn.: Yale University Press).Google Scholar
  76. Schultz, T. W. (1978) Distortions of Agricultural Incentives (Bloomington, Ind.: Indiana University Press).Google Scholar
  77. Sen, A. K. (1963) ‘Neo-Classical and Neo-Keynesian Theories of Distribution’, Economic Record, vol. 39, pp. 54–64.CrossRefGoogle Scholar
  78. Simon, H. (1947) ‘Effects of Increased Productivity upon the Ratio of Urban to Rural Population’, Econometrica, vol. 15, pp. 31–42.CrossRefGoogle Scholar
  79. Solow, R. M. (1956) ‘A Contribution to the Theory of Economic Growth’, Quarterly Journal of Economics, vol. 70, pp. 65–94.CrossRefGoogle Scholar
  80. Steindl, J. (1952) Maturity and Stagnation in American Capitalism (Oxford: Basil Blackwell).Google Scholar
  81. Stolper, W. F. and Samuelson, P. A. (1941) ‘Protection and Real Wages’, Review of Economic Studies, vol. 9, pp. 58–73.CrossRefGoogle Scholar
  82. Streeten, P. (1959) ‘Unbalanced Growth’, Oxford Economic Papers, vol. 11, pp. 167–90.Google Scholar
  83. Swan, T. W. (1960) ‘Economic Control in a Dependent Economy’, Economic Record, vol. 36, pp. 51–66.CrossRefGoogle Scholar
  84. Sylos-Labini, P. (1984) The Forces of Economic Growth and Decline (Cambridge, Mass.: MIT Press).Google Scholar
  85. Syrquin, M. (1986) ‘Sector Proportions and Economic Development: The Evidence since 1950’, chapter 2 in this volume.Google Scholar
  86. Tavares, M. da C. (1972) Da Substituiçāo de Importações ao Capitalismo Financeiro (Rio de Janeiro: Zahar Editores).Google Scholar
  87. Taylor, L. (1979) Macro Models for Developing Countries (New York: McGraw-Hill).Google Scholar
  88. Taylor, L. (1983) Structuralist Macroeconomics (New York: Basic Books).Google Scholar
  89. Taylor, L. (1985) ‘Demand Composition, Income Distribution, and Growth’, Department of Economics, Massachusetts Institute of Technology.Google Scholar
  90. Taylor, L. (1986) ‘Economic Openness: Problems to Century’s End’, Department of Economics, Massachusetts Institute of Technology.Google Scholar
  91. Taylor, L. and Bacha, E. L. (1976) ‘The Unequalizing Spiral: A First Growth Model for Belinida’, Quarterly Journal of Economics, vol. 90, pp. 197–218.CrossRefGoogle Scholar
  92. Todaro, M. P. (1969) ‘A Model of Labor Migration and Urban Unemployment in Less Developed Countries’, American Economic Review, vol. 59, pp. 138–48.Google Scholar
  93. Urata, S. (1986) ‘Sources of Economic Growth and Structural Change: An International Comparison’, chapter 7 of this volume.Google Scholar
  94. Young, A. (1928) ‘Increasing Returns and Economic Progress’, Economic Journal, vol. 38, pp. 527–42.CrossRefGoogle Scholar

Copyright information

© International Economic Association 1989

Authors and Affiliations

  • Lance Taylor
    • 1
  1. 1.Massachusetts Institute of TechnologyUSA

Personalised recommendations