Government failures—red tape, corruption, weak property rights and poor rule of law—impose disproportionate costs on the modern parts of the economy (which need inputs, customs, tax compliance and contracts) compared to traditional petty trade, which is why the modern sector remains underdeveloped.

causalpending

Speaker

Dani Rodrik

Evidence Quote

clearly impose disproportionate costs on the modern parts of the economy compared to the traditional part

Source

Dani Rodrik on Globalization, Development, and Employment 04/11/2011EconTalk
Created: 6/16/2026, 2:24:26 PM

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