The concept of a dual economy, first prominently introduced by British economist W. Arthur Lewis in his seminal work "Economic Development with Unlimited Supplies of Labour" (1954), serves as a pivotal framework in understanding the economic structures of developing nations. The dual economy model illustrates the coexistence of two distinct sectors within an economy: a traditional, often agrarian sector, and a modern, industrial sector. This framework has significant sociological implications, as it sheds light on the structural transformations, labor dynamics, and socio-economic disparities within these economies.
1. Conceptual Foundation of the Dual Economy
At its core, the dual economy model posits that developing economies are characterized by a dichotomy between a subsistence sector and a capitalist sector. The subsistence sector, typically agrarian, relies on traditional methods of production, exhibits low productivity, and is marked by surplus labor. In contrast, the capitalist sector is industrial or modern, utilizing advanced technology, exhibiting higher productivity, and offering higher wages. The interaction between
