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Population Growth And Industrialization

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  • HAIWEN ZHOU

Abstract

"The role of population growth in the process of industrialization is studied in a general equilibrium model. It provides a formal presentation of Rostow's insight of the role of a leading sector in industrialization. Population growth may lead to a shortage of food and a breakdown of the industrialization process. However, population growth may benefit the manufacturing sector in the adoption of increasing returns to scale technologies. Elasticity of demand for agricultural goods plays an important role in determining whether an improvement of agricultural technology or an increase of population is beneficial to the manufacturing sector. A comparison of China and Britain before the Industrial Revolution shows that research and development are necessary for sustained growth. Achieving industrialization independently requires a combination of a sufficiently large market size from the demand side and a sufficiently large supply of technologies from the supply side". ("JEL "O14, E10, N10, Q01) Copyright (c) 2008 Western Economic Association International.

Suggested Citation

  • Haiwen Zhou, 2009. "Population Growth And Industrialization," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 249-265, April.
  • Handle: RePEc:bla:ecinqu:v:47:y:2009:i:2:p:249-265
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    References listed on IDEAS

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    1. Tamura, Robert, 1996. "From decay to growth: A demographic transition to economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 20(6-7), pages 1237-1261.
    2. Tamura, Robert, 2006. "Human capital and economic development," Journal of Development Economics, Elsevier, vol. 79(1), pages 26-72, February.
    3. Wolfgang Keller & Carol H. Shiue, 2007. "Market Integration and Economic Development: A Long-run Comparison," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 107-123, February.
    4. Kevin M. Murphy & Andrei Shleifer & Robert Vishny, 1989. "Income Distribution, Market Size, and Industrialization," The Quarterly Journal of Economics, Oxford University Press, vol. 104(3), pages 537-564.
    5. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633.
    6. Carol H. Shiue & Wolfgang Keller, 2007. "Markets in China and Europe on the Eve of the Industrial Revolution," American Economic Review, American Economic Association, vol. 97(4), pages 1189-1216, September.
    7. John A. List & Haiwen Zhou, 2007. "Internal Increasing Returns to Scale and Economic Growth," NBER Technical Working Papers 0336, National Bureau of Economic Research, Inc.
    8. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    9. Tamura, Robert, 1996. "Regional economies and market integration," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 825-845, May.
    10. Tamura, Robert, 2002. "Human capital and the switch from agriculture to industry," Journal of Economic Dynamics and Control, Elsevier, vol. 27(2), pages 207-242, December.
    11. Haiwen Zhou, 2007. "Increasing Returns, the Choice of Technology, and the Gains from Trade," Southern Economic Journal, Southern Economic Association, vol. 74(2), pages 581-600, October.
    12. Haiwen Zhou, 2007. "Oligopolistic Competition And Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 915-933.
    13. Carol H. Shiue, 2002. "Transport Costs and the Geography of Arbitrage in Eighteenth-Century China," American Economic Review, American Economic Association, vol. 92(5), pages 1406-1419, December.
    14. Gary D. Hansen & Edward C. Prescott, 2002. "Malthus to Solow," American Economic Review, American Economic Association, vol. 92(4), pages 1205-1217, September.
    15. Haiwen Zhou, 2004. "The division of labor and the extent of the market," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 195-209, July.
    16. Goodfriend, Marvin & McDermott, John, 1995. "Early Development," American Economic Review, American Economic Association, vol. 85(1), pages 116-133, March.
    17. Ashton, T. S., 1997. "The Industrial Revolution 1760-1830," OUP Catalogue, Oxford University Press, number 9780192892898.
    18. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Citations

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    Cited by:

    1. Haiwen Zhou, 2012. "Internal Rebellions and External Threats: A Model of Government Organizational Forms in Ancient China," Southern Economic Journal, Southern Economic Association, vol. 78(4), pages 1120-1141, April.
    2. Haiwen Zhou, 2011. "Economic Systems and Economic Growth," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(3), pages 217-229, September.
    3. Lei Wen & Haiwen Zhou, 2012. "Financial and Product Market Integration under Increasing Returns to Scale," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(1), pages 18-36.
    4. Haiwen Zhou & Ruhai Zhou, 2016. "A Dynamic Model of the Choice of Technology in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 11(3), pages 498-518, September.
    5. Haiwen Zhou, 2015. "The Choice of Technology and Equilibrium Wage Rigidity," Frontiers of Economics in China, Higher Education Press, vol. 10(2), pages 252-271, June.
    6. Haiwen Zhou, 2011. "Confucianism and the Legalism: A model of the national strategy of governance in ancient China," Frontiers of Economics in China, Springer;Higher Education Press, vol. 6(4), pages 616-637, December.
    7. Haiwen Zhou, 2013. "The Choice of Technology and Rural-Urban Migration in Economic Development," Frontiers of Economics in China, Higher Education Press, vol. 8(3), pages 337-361, September.
    8. repec:pal:easeco:v:44:y:2018:i:2:d:10.1057_s41302-016-0082-x is not listed on IDEAS
    9. Haiwen Zhou, 2018. "A Model of Institutional Complementarities in Ancient China," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(2), pages 286-304, April.

    More about this item

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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