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Trading Population for Productivity: Theory and Evidence

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Oded Galor
Andrew Mountford

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Abstract

This research argues that the di¤erential e¤ect 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 signi?cant portion of these gains in less developed economies have been channeled towards population growth. Cross-country regressions establish that indeed trade has positive e¤ects on fertility and negative e¤ects on education in non-OECD economies, while inducing fertility decline and human capital formation in OECD economies.

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Paper provided by Brown University, Department of Economics in its series Working Papers with number 2008-2.

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Date of creation: 2008
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Handle: RePEc:bro:econwp:2008-2

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Postal: Department of Economics, Brown University, Providence, RI 02912

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  33. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, December.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  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. 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!]
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  3. 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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  4. 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!]
  5. Strulik, Holger & Weisdorf, Jacob, 2008. "Birth, Death, and Development: A Simple Unified Growth Theory," Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover dp-412, Universität Hannover, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
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  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)
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  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!]
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  8. 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!]
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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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