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Shared Sectoral Growth Versus the Dual Economy Model: Evidence from Côte d'Ivoire, Ghana, and Zimbabwe
Author(s) -
Blunch NielsHugo,
Verner Dorte
Publication year - 2006
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/j.1467-8268.2006.00150.x
Subject(s) - interdependence , economics , livelihood , agriculture , externality , dual (grammatical number) , dual economy , cote d ivoire , tertiary sector of the economy , development economics , economic system , economy , political science , geography , art , philosophy , literature , humanities , microeconomics , law , archaeology
Though recently challenged, the dual economy view has affected development economics and development policy, either explicitly or implicitly, for more than half a century. According to this view, agriculture merely serves to build the industrial sector — in particular, agriculture has no role as an engine of growth in the long term. Examining agriculture, industry and service sector growth in Côte d'Ivoire, Ghana, and Zimbabwe over more than three decades, we find little empirical support for this view. On the contrary, our analyses find a large degree of interdependence in long‐run sectoral growth, implying that the sectors ‘grow together’ or, similarly, that there are externalities or spillovers between sectors. Policy implications are also discussed; these include directing more attention towards the interdependencies in sectoral growth broadly defined. In particular, our findings have implications for the design of education and health programs, as well. This improved understanding of inter‐sectoral dynamics at all levels may facilitate policy implementation aimed at increasing economic growth — and thereby ultimately improving peoples' livelihoods — in Africa and elsewhere.