Dual economy model

The dual economy model describes a situation where a country has two separate sectors: a modern, industrialized sector with advanced technology and higher productivity, and a traditional, agricultural sector that is less productive and often relies on older methods. These sectors coexist, often sharing limited interactions. The model explains economic differences within a country, highlighting challenges in development, as resources tend to be concentrated in the modern sector, leaving the traditional sector underdeveloped. It helps policymakers understand the need to bridge gaps and promote inclusive growth across both sectors.