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Trading Population for Productivity: Theory and Evidence

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Author Info
ODED GALOR
ANDREW MOUNTFORD

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Abstract

This research argues that the differential effect of international trade on the demand for human capital across countries has been a major determinant of the distribution of income and population across the globe. In developed countries the gains from trade have been directed towards investment in education and growth in income "per capita", whereas a significant portion of these gains in less developed economies has been chanelled towards population growth. Cross-country regressions establish that indeed trade has positive effects on fertility and negative effects on education in non-OECD economies, while inducing fertility decline and human capital formation in OECD economies. Copyright © 2008 The Review of Economic Studies Limited.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-937X.2008.00501.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 75 (2008)
Issue (Month): 4 (October)
Pages: 1143-1179
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Handle: RePEc:bla:restud:v:75:y:2008:i:4:p:1143-1179

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  1. Gianfranco Di Vaio & Kerstin Enflo, 2009. "Did Globalization Lead to Segmentation? Identifying Cross-Country Growth Regimes in the Long-Run," Discussion Papers 09-08, University of Copenhagen. Department of Economics. [Downloadable!]
  2. Dietz Vollrath, 2008. "The Dual Economy in Long-run Development," Working Papers 2008-03, Department of Economics, University of Houston. [Downloadable!]
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  3. Berdugo, Binyamin & Hadad, Sharon, 2008. "How Do Firing Costs Affect Innovation and Growth when Workers' Ability is Unknown? – Employment Protection as a Burden on a Firm's Screening Process," MPRA Paper 11410, University Library of Munich, Germany. [Downloadable!]
  4. Daniel Mejía & María Teresa Ramírez & Jorge Tamayo, . "The Demographic Transition in Colombia: Theory and Evidence," Borradores de Economia 538, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  5. Ashraf, Quamrul & Galor, Oded, 2008. "Dynamics and Stagnation in the Malthusian Epoch: Theory and Evidence," CEPR Discussion Papers 7057, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Galor, Oded & Moav, Omer & Vollrath, Dietrich, 2008. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions and the Great Divergence," CEPR Discussion Papers 6751, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Oded Galor, 2009. "2008 Lawrence R. Klein Lecture –Comparative Economic Development: Insights from Unified Growth Theory," Working Papers 2009-10, Brown University, Department of Economics. [Downloadable!]
  8. Holger Strulik & Jacob Weisdorf, 2008. "Birth, Death, and Development: A Simple Unified Growth Theory," Discussion Papers 08-32, University of Copenhagen. Department of Economics. [Downloadable!]
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  9. Holger Strulik & Jacob Weisdorf, 2008. "Population, food, and knowledge: a simple unified growth theory," Journal of Economic Growth, Springer, vol. 13(3), pages 195-216, September. [Downloadable!] (restricted)
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