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Trade and the Great Divergence: The Family Connection

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Author Info
Galor, Oded
Mountford, Andrew

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Abstract

This research argues that the rapid expansion of international trade in the second phase of the industrial revolution has played a major role in the timing of demographic transitions across countries and has thereby been a significant determinant of the distribution of world population and a prime cause of the 'Great Divergence' in income per capita across countries in the last two centuries. The analysis suggests that international trade had an asymmetrical effect on the evolution of industrial and non-industrial economies. While in the industrial nations the gains from trade were directed primarily towards investment in education and growth in output per capita, a significant portion of the gains from trade in non-industrial nations was channelled towards population growth.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5490.

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Date of creation: Feb 2006
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Handle: RePEc:cpr:ceprdp:5490

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Related research
Keywords: demographic transition growth human capital industrial revolution international trade

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
J10 - Labor and Demographic Economics - - Demographic Economics - - - General
N30 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - General, International, or Comparative
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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References listed on IDEAS
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. Oded Galor, 2004. "From Stagnation to Growth: Unified Growth Theory," GE, Growth, Math methods 0409003, EconWPA. [Downloadable!]
    Other versions:
  2. Oded Galor & Omer Moav, 2002. "Natural Selection And The Origin Of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1133-1191, November. [Downloadable!] (restricted)
    Other versions:
  3. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Kevin O’rourke & Jeffrey Williamson, 2005. "From Malthus to Ohlin: Trade, Industrialisation and Distribution Since 1500," Journal of Economic Growth, Springer, vol. 10(1), pages 5-34, 01. [Downloadable!] (restricted)
  5. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-78, December. [Downloadable!] (restricted)
  6. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December. [Downloadable!] (restricted)
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  7. Oded Galor & David N. Weil, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September. [Downloadable!] (restricted)
  8. Oded Galor & Omer Moav, 2006. "Das Human-Kapital: A Theory of the Demise of the Class Structure," Review of Economic Studies, Blackwell Publishing, vol. 73(1), pages 85-117, 01. [Downloadable!] (restricted)
    Other versions:
  9. Galor, Oded & Weil, David, 1999. "From Malthusian Stagnation to Modern Growth," CEPR Discussion Papers 2082, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May. [Downloadable!] (restricted)
  11. Oded Galor & Andrew Mountford, 2004. "Trading Population for Productivity," GE, Growth, Math methods 0410001, EconWPA. [Downloadable!]
    Other versions:
  12. Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, 09. [Downloadable!]
    Other versions:
  13. Stokey, Nancy L, 1991. "The Volume and Composition of Trade between Rich and Poor Countries," Review of Economic Studies, Blackwell Publishing, vol. 58(1), pages 63-80, January. [Downloadable!] (restricted)
  14. Oded Galor & David N. Weil, 1998. "Population, Technology, and Growth: From the Malthusian Regime to the Demographic Transition," Working Papers 98-1, Brown University, Department of Economics, revised 19 Aug 1998. [Downloadable!]
    Other versions:
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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. Broadberry, Stephen, 2007. "Recent Developments In The Theory Of Very Long Run Growth : A Historical Appraisal," The Warwick Economics Research Paper Series (TWERPS) 818, University of Warwick, Department of Economics. [Downloadable!]
  2. Oded Galor & Quamrul Ashraf, 2008. "Human Genetic Diversity and Comparative Economic Development," Working Papers 2008-3, Brown University, Department of Economics. [Downloadable!]
    Other versions:
  3. Brian Snowdon, 2008. "Towards a Unified Theory of Economic Growth: Oded Galor on the Transition from Malthusian Stagnation to Modern Economic Growth," Working Papers 2008-4, Brown University, Department of Economics. [Downloadable!]
  4. Andrew Mountford & Hillel Rapoport, 2007. "The Brain Drain and the World Distribution of Income and Population," CReAM Discussion Paper Series 0704, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  5. Oded Galor, 2006. "Human Capital, Fertility and Growth," Working Papers 2006-22, Brown University, Department of Economics. [Downloadable!]
  6. Akiko Maruyama & Kazuhiro Yamamoto, 2007. "Variety expansion and fertility rate," Discussion Papers in Economics and Business 07-29-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Jan 2008.
    Other versions:
  7. Oded Galor & Omer Moav & Dietrich Vollrath, 2006. "Inequality in Land Ownership, the Emergence of Human Capital Promoting Institutions, and Great Divergence," Working Papers 2006-14, Brown University, Department of Economics. [Downloadable!]
  8. Rubén Segura-Cayuela, 2006. "Inefficient policies, inefficient institutions and trade," Banco de España Working Papers 0633, Banco de España. [Downloadable!]
    Other versions:
  9. Oded Galor, 2006. "The Demographic Transition," Working Papers 2006-24, Brown University, Department of Economics. [Downloadable!]
  10. Oded Galor, 2006. "Economic Growth in the Very Long-Run," Working Papers 2006-16, Brown University, Department of Economics. [Downloadable!]
  11. Oded Galor & Andrew Mountford, 2008. "Trading Population for Productivity: Theory and Evidence," Working Papers 2008-2, Brown University, Department of Economics. [Downloadable!]
    Other versions:
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