A two-sector model of a developing country consisting of agriculture and industry is presented. Growth and structural change are discussed in variants with exogenous as well as endogenous technical progress, algebraically and by numerical simulations. Consequences from taking into account...

The cross-country growth literature commonly uses aggregate economy datasets such as the Penn World Table (PWT) to estimate homogeneous production function or convergence regression models. Against the background of a dual economy framework this paper investigates the potential bias arising when...