Alain Desdoigts () (Université Paris-Est - Cité Descartes, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) Fernando Jaramillo () (Universidad del Rosario - Facultad de Economia)
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In this paper, we investigate international demand spillovers brought about by a global middle class and their impact on trade patterns and industrialization. We propose a multi-industry and two-country trade model featuring demand complementarities propagating increasing returns across industries and national boundaries. We show how the international extent of demand spillovers depends upon asymmetries in domestic income distribution, labor efficiency, and labor force size ; that is, on the global distribution of real income.
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Length: Date of creation: Feb 2006 Date of revision: Handle: RePEc:hal:cesptp:halshs-00111186_v3
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00111186/en/ Contact details of provider: Web page: http://hal.archives-ouvertes.fr/
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