RT Journal Article SR Electronic(1) A1 Codrina RadaYR 2007 T1 A Growth Model for a Two-Sector Economy with Endogenous Productivity JF United Nations, VO OP DO https://doi.org/10.18356/e252cd64-en PB United Nations, SN , AB A growth model is developed for an open dual economy. The economy expands due to a higher growth rate of labour productivity in the modern sector through the Kaldor-Verdoorn channel and higher effective demand through a Keynesian channel. The model incorporates a retardation mechanism affecting the slopes of productivity and output growth schedules as labour surplus and economies of scale diminish. A wage or profit-led regime and initial conditions may give rise to: de-industrialization in terms of both output and employment; a growth trap sustaining a situation of structural heterogeneity; or sustainable employment and adequate output and productivity growth., UL https://www.un-ilibrary.org/content/papers/25206656/44