Population Growth Overshooting and Trade in Developing Countries

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Population Growth Overshooting and Trade in Developing Countries

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Ulla Lehmijoki
Tapio Palokangas

Additional information is available for the following registered author(s):

Tapio Palokangas

Abstract

This paper examines a developing economy by a family-optimization model in which the number of children is a normal good in preferences. Trade liberalization generates two effects: an income effect, which raises population growth in the short run; and a gender wage effect, which decreases that in the long run. With higher income, families invest more in capital. Because female labor is more complementary to capital, a higher level of investment increases women's relative wages and attracts more of them from child rearing into production. Consequently, the population growth rate falls below the original level in the long run. This paper also provides some empirical evidence on these results.

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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c011_025.

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Length: 23 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:deg:conpap:c011_025

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Article
- Ulla Lehmijoki & Tapio Palokangas, 2009. "Population growth overshooting and trade in developing countries," Journal of Population Economics, Springer, vol. 22(1), pages 43-56, January. [Downloadable!] (restricted)

Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-12-01 (All new papers)
NEP-DEV-2006-12-01 (Development)
NEP-INT-2006-12-01 (International Trade)

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