Edge
Use the latest browser recommended by Microsoft
Get speed, security and privacy with Microsoft Edge

Navigation

Contact Us

Email:
hrinfo@centralbank.org.bb - Human Resources Matters
hrapplications@centralbank.org.bb - Applications for Employment
More
Fax:
(246) 427-4074 - Accounts
(246) 437-3334 - Banking
(246) 436-7836 - Governor’s Office
More
Address:
Tom Adams Financial Centre
Spry Street
Bridgetown
Barbados

Dualism, unemployment and growth

Using a dual representation of the economy, we develop a model that attempts to explain economic take-off. The model takes into account two kinds of externalities that spread from the modern sector into the traditional one. On the one hand, a static externality (Marshall type economy scale) and on the other hand, a dynamic technology externality. We show that the economy can be characterised by two configurations: and underdevelopment equilibrium and a biased-development equilibrium with a higher level of unemployment. If the development of the modern sector decreases employment, then the take-off is accomplished by an increase in unemployment.

wp2000-2.DOC