... modern and traditional sectors in an economy; see Lewis (1954, 1979) and Ranis and Fei (1961).17 Among the many extensions see Bhagwati and Srinivasan (1974), Chao and Yu (1994), Corden and Findlay ... Lopez and Schiff (1995, 1998) and Ottaviano and Thisse (2002).20 See Lee (1966), Da Vanzo (1981) and Carrington et al. (1996).21 We must assume homogenous labour (supply) and production (demand).22 ... (1987), Knapp and Graves (1989), Courant and Deardorff (1993), Haas and Serow (1993), Clark and Knapp (1995), Mueser and Graves (1995), Goetz et al. (1996), Brueckner et al. (1999) and Deller et...