Effect of Land Diversion from Agriculture to Industry in a Dualistic Economy

Abstract

This paper seeks to analyze what will be the effect of diverting agricultural land for industry in a dualistic economy framework. In many LDCs, like that of India, the government's strategy for development has been forceful acquisition of agricultural land for industries which produce goods that do not lead to trickle-down effect to the unorganized sector. As a result, the largest part of GDP accrues to the tiniest section of the population, thus, leading to huge unemployment in the country. Definitely this is not the correct development strategy for an LDC.

Keywords: organised sector, unorganised sector, industrialization.