Conclusions

Abstract

In this study we have combined the neoclassical model of a dual economy with methods and research topics from the New Growth Theory to study the consequences of agricultural productivity growth for a two-sector economy. This analysis has produced some interesting results for economic policies in developing countries as well as for growth and development theory. A considerable part of these results has been obtained by employing numerical techniques which so far have only rarely been used within the framework chosen here. In addition to providing information about the quantitative effects of economic policies, these techniques have freed us from the straight-jacket of steady-state analysis, at lease to a certain extend.