The theory of Technical dualism is one of the theories of dualism. Professor Higgins has developed the theory of Technological Dualism. By this, he means: "The use of different production functions in the advance sector and in the traditional sectors of UDCs".

1. TECHNICAL DUALISM
Sr.Sindhu P.J (Sr.Sharin CTC)

2. Prof. Higgins has propounded the concept of
technical dualism.
1. Meaning of technological dualism:
"The use of different production
functions in the advance sector and in
the traditional sectors of UDCs".
 The existence of such dualism has
increased the problem of structural or
technological unemployment in the
industrial sector and disguised
unemployment in the rural sector.

3.  Higgins theory of technological dualism
incorporates the factor proportion problem
as discussed by K.S. Eckaus, which is
related to limited productive employment
opportunities found in the two sectors of a
UDCs because of market imperfections,
different factor endowments and different
production functions.

4. 1. Characteristic of the dual sector:
A. Features of the traditional sector:
1. Agriculture, cottage and small industries
including handicrafts are the principal
occupation of this sector.
2.Different techniques and different
combinations of labour and capital are often
employed in this sector .Thus ,technical
coefficient of production is highly variable in the
sector.
3. compare to capital, labour is often more
intensely utilized in the process of production.
That is, the process of production is dominated
by the labour intensive technique of production

5.  1.This sector includes industries, plantations,
transport and related activities as its principle
occupations.
 2. There is a limited scope of technical
substitutability of factors of production.
accordingly, technical coefficient of production
remains generally fixed.
 3. Compare to labour, more of capital is utilised.
Thus, the process of productions is dominated
by capital intensive technique of production.
 4. Besides labour and financial capital, developed
land also constitutes a major resource of
productions in this sector.

6. 3.Explanation of technical dualism
1. Differences in factor-endowment, difference in the
availability of capital and labour is one of the two
fundamental basis of technical dualism.
 The traditional sector of the dual economies is
generally characterised by the abundance of labour
but also shortage of capital.
 So,production techniques are often labour intensive
in the sector. In contrast, in the modern sector,
more of capital compared to labour is generally
observed.
 Thus, almost 2distinct techniques of production are
found to exist across two different sectors of dual
economies.

7. 2. Difference in production function –
Difference in production function is the
second fundamental basis of technical
dualism. While there are fixed
coefficients of production function in
the modern sector, these are often
variable in the traditional sector.
Higgins analysis this duality in the
context of ‘factor proportions.’

8.  Technological dualism suggest that
the existence of vast unemployment
in less developed economies is not
due to the lack of effective demand
but owing to the resource constraint
as well as technological
backwardness.
 The reason for technological dualism
in UDCs are mainly due to different
production function and different
resource endowment

9. Merit of the Theory
 Higgins concept of technological dualism is
undoubtedly more realistic.
 The Higgins theory was very clearly explains
how unemployment as well as under
employment emerge in less developed
countries owing to the process of
industrialisation and technical progress.
 The solution of unemployment problem lies in
accelerating the process of domestic capitals
formation.

10. CRITICAL EVALUATION
 Higgins theory is not free from criticism. Following
observation may be noted in this regard-
 1. The theory explains the emergence of
underemployment in the traditional sector of developing
economies, but does not offer any solution thereof.
 2. The theory is based on a questionable assumption
that the technical coefficient of production is fixed in the
modern sector of the underdeveloped economies. A little
degree of elasticity cannot be ruled in any production
function.

11.  Continued…….
 (iii) Factor Prices do not entirely
depend upon Factor Endowment
 (iv) Ignoring the Institutional Factors
 (v) Ignoring the Use of Labour
Absorbing Techniques
 (vi) Size and Nature of Disguised
Unemployment is not Assessed

12. THANK YOU