Industrialization allowed the industrialized world of today to escape from a regime characterized by low economic and population growth and to enter a regime of high economic and population growth. To explain this transition, we construct a two-sector growth model with endogenous fertility and endogenous technological progress in the manufacturing sector. With this structure our model is able to replicate the stylized facts of the British industrial revolution. In addition, we show that industrialization requires rising growth of agricultural total factor productivity. This result is in marked contrast to previous work within a similar framework - but with a constant population - which came to the conclusion that industrialization requires merely a rising level of agricultural total factor productivity.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
2485.
Find related papers by JEL classification: J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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