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From Malthus to Ohlin: Trade, Industrialisation and Distribution Since 1500

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Author Info
Kevin O’rourke
Jeffrey Williamson

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Abstract

A recent endogenous growth literature has focused on the transition from a Malthusian world where real wages were linked to factor endowments, to one where modern growth has broken that link. In this paper we present evidence on another, related phenomenon: the dramatic reversal in distributional trends—from a steep secular fall to a steep secular rise in wage-land rent ratios—which occurred some time early in the 19th century. What explains this reversal? While it may seem logical to locate the causes in the Industrial Revolutionary forces emphasized by endogenous growth theorists, we provide evidence that something else mattered just as much: the opening up of the European economy to international trade. Copyright Springer Science+Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s10887-005-1111-5
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Publisher Info
Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 10 (2005)
Issue (Month): 1 (01)
Pages: 5-34
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Handle: RePEc:kap:jecgro:v:10:y:2005:i:1:p:5-34

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Related research
Keywords: trade; industrial revolution; income distribution;

Cited by:
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  1. Osipian, Ararat, 2007. "Экономический Рост: Образование Как Фактор Производства
    [Economic Growth: Education as a Factor of Production]    ," MPRA Paper 7593, University Library of Munich, Germany. [Downloadable!]
  2. Galor, Oded & Mountford, Andrew, 2006. "Trade and the Great Divergence: The Family Connection," CEPR Discussion Papers 5490, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Guillaume Daudin & Kevin H. O’Rourke & Leandro Prados de la Escosura, 2008. "Trade and Empire, 1700-1870," Documents de Travail de l'OFCE 2008-24, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
    Other versions:
  4. Volker Caspari & Klaus Pertz, 2008. "Unified Growth Based on the Specific Factors Model," Darmstadt Discussion Papers in Economics 193, Institut für Volkswirtschaftslehre (Department of Economics), Technische Universität Darmstadt (Darmstadt University of Technology). [Downloadable!]
  5. O'Rourke, Kevin H & Rahman, Ahmed & Taylor, Alan M, 2007. "Trade, Knowledge, and the Industrial Revolution," CEPR Discussion Papers 6293, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Quamrul Ashraf & Oded Galor, 2008. "Dynamics and Stagnation in the Malthusain Epoch: Theory and Evidence," Working Papers 2008-14, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  7. Wolfgang Keller & Carol H. Shiue, 2004. "Market Integration and Economic Development: A Long-run Comparison," NBER Working Papers 10300, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Oded Galor & Andrew Mountford, 2008. "Trading Population for Productivity: Theory and Evidence," Working Papers 2008-2, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  9. Carol H. Shiue & Wolfgang Keller, 2004. "Markets in China and Europe on the Eve of the Industrial Revolution," NBER Working Papers 10778, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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