In discussions of economic development, industrial dualism is often ignored. Industry, or the modern sector, in developing countries is composed of an overregulated formal sector and a free-entry informal sector. Because of the nature of the regulations we can, in general, identify the formal...

In discussions of economic development, industrial dualism is often ignored. Industry, or the modern sector, in developing countries is composed of an overregulated formal sector and a free‐entry informal sector. Because of the nature of the regulations we can, in general, identify the formal...

By performing a cross-country growth regression for the 1970-1998 period this paper finds evidence for the fact that countries with a more developed financial sector are better able to nullify the negative effects of policy uncertainty on per capita economic growth. This clearly indicates the...