What is structural dualism in developing economies?

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2026-04-22 16:15

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Structural dualism in developing economies refers to the coexistence of two distinct economic sectors: a modern, formal sector characterized by advanced technology and higher productivity, and a traditional, informal sector that relies on low productivity and often subsistence-level practices. This duality can lead to disparities in income, employment, and access to resources, contributing to persistent poverty and underdevelopment in the informal sector. The structural divide complicates economic policy and development efforts, as strategies that benefit one sector may not effectively address the needs of the other.

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