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1992

Development

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Modern Sector Enlargement Or Traditional Sector Enrichment? Gnp Effects With Induced Migration, Gary S. Fields Jan 1992

Modern Sector Enlargement Or Traditional Sector Enrichment? Gnp Effects With Induced Migration, Gary S. Fields

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This paper considers how GNP would change if development resources are allocated in alternative ways, taking account of induced migration. The preferred allocation of development resources between sectors is shown to depend on the amounts of modern sector enlargement and traditional sector enrichment that could be achieved under alternative resource allocations and the labor market effects of each.

The practical significance of these results is the following. Using additional development resources to expand modern sector exports and employment is most efficacious when the marginal product of capital in the modem sector is high and the amounts of induced migration and ...