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Population growth and north-south uneven development

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  • Hiroaki Sasaki
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    Abstract

    This paper develops a model of North-South trade and economic development. The model is consistent with two empirical facts: (1) the growth rate of income per capita differs across countries; and (2) the relationship between the growth of population and that of income per capita differs for developed and developing countries. We assume that the North and the South are characterized by increasing-returns-to-scale and decreasing-returns-to-scale technologies, respectively. Real national income grows at the same rate in both countries along the balanced growth path owing to a terms of trade effect. However, real income per capita grows at different rates because of population growth differentials. In developed countries, the correlation between population growth and income per capita growth can be positive or negative while in developing countries, the correlation is negative. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

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    File URL: http://hdl.handle.net/10.1093/oep/gpq019
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    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Economic Papers.

    Volume (Year): 63 (2011)
    Issue (Month): 2 (April)
    Pages: 307-330

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    Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:307-330

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    Cited by:
    1. Sasaki, Hiroaki & Hoshida, Keisuke, 2014. "Semi-Endogenous R&D Growth Model with Negative Population Growth," MPRA Paper 53833, University Library of Munich, Germany.
    2. Hiroaki Sasaki, 2013. "Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model," Discussion papers, Graduate School of Economics Project Center, Kyoto University e-13-004, Graduate School of Economics Project Center, Kyoto University.

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