Mechanization (or automation) - the replacement by machines of humans (and animals) engaged in production tasks- has proceeded continuously since the Industrial Revolution and seems to have accelerated recently due to the rapid advancement of information technology. This paper examines...

This paper develops a dynamic dual-economy model and examines how the long-run outcome of an economy depends on the initial distribution of wealth and sectoral productivity.It is shown that, for fast transformation into a developed economy, the initial distribution must be such that extreme...