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Agricultural Dualism, Wage Inequality and Development Policies

Ranjanendra Narayan Nag


Rakhi Banerjee

Ranjanendra Narayan Nag 1
Rakhi Banerjee 2

  1. St. Xaviers’ College (Autonomous), Kolkata 1

  2. Gurudas College 2


The main purpose of this paper is to explore how globalization affects  wage inequality and welfare in a small open economy characterized by agricultural dualism . By using a three- sector general equilibrium model we establish the possibility of a decline in welfare in the trail of  different liberalization measures.In particular, we examine effects of agricultural trade liberalization and capital market liberalization. We demonstrate that  implicatins of these liberalization measures  for welfare and wage gap are critically sensitive to agricultural dualism, factor specificity and  factor intensity ranking.

Contribution/ Originality


Agricultural dualism, Wage inequality, Inflow of foreign capital, Agricultural trade lioberalization, Welfare.


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