dual economy theory

(1953)

Attributed to J H BOEKE from study of postwar Indonesia, dual economy theory refers to an economy in which rich, capital-intensive modern sectors exist in the same model as comparatively poor, traditional, labor intensive sectors.

Economists have deliberated over whether an economy should achieve economic growth through its technically advanced sectors or whether resources should be spread evenly across the whole economy to achieve a more balanced growth.

Also see: dependency theory, demographic transition

Source:
J H Boeke, Economics and Economic Policy of Dual Societies as Exemplified by Indonesia (New York, 1953)

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