Review On Western Dual Economic Theory

Dual economy is based upon two separate or distinct economic systems which co-exist in the same geographical space. Dualism is characteristic of many developing countries in which some parts of a country resemble advanced economies while other parts resemble traditional economies.From the view of thought prolongation, The Dual Economy can be traced back to the school of physiocracy. With the advent of the industrial revolution in Western Europe, The Dual Economy of physiocracy school is gradually given way to classical economics theory. In his classic"An inquiry into the nature and causes of the wealth of nations", Adam Smith pointed out directly that the main cause that labour force's enhancement in agriculture sector is always lower than the ones in manufacturing sector was probably because there wasn't a complete division of agricultural systems. And this is regarded the initially flush of the thoughts of the dual economy in the fields of industrial and agriculture. But as a glossary of"dual economic structure", which is attributed to J H Boeke (1953) 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. Real upsurge in the study of dual economy is Lewis, who in 1954 published the classic essay"Economic development with unlimited supplies of labor". Lewis pioneered the analysis's method of dual economy, and it appeals to many scholars further research about the theory of duality configuration. After Lewis, Fei and Ranis expatiate on the theory and further the models, known as"Lewis-Fei-Ranis model"under a framework of classical economics analysis of the classical dual economy model. Thinking of the...