What became the post-War era's "less developed countries" (LDCs) varied enormously in their pre- modern or pre-industrial economic conditions. We hypothesize that if these countries are arrayed on a continuum of pre-industrial development such as that of the demographer Ester Boserup, countries...

This paper develops a two-sector model with specific factors of production à la Ricardo-Viner-Jones, in which agriculture is subject to diminishing returns and market-clearing wages, while increasing returns and efficiency wage mechanisms prevail in industry. The asymmetric interaction of the...