Disarticulation and Human Welfare in Less Developed Countries

Abstract

Disarticulation refers to the juxtaposition of economic sectors with different levels of development and productivity. Disarticulation is hypothesized to have a negative effect on social well-being, net of economic development, because it inhibits the spread effects generally thought to be associated with economic growth. Findings are in accord with this hypothesis, although the relationship is complex. The strongest effects of disarticulation are found among the poorest nations. The concept of disarticulation opens a new and promising avenue of research that may help to resolve contradictory findings of recent research on the political economy of growth.