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Development Dynamics: Economic Integration and the Demographic Transition

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  • McDermott, John

Abstract

This paper examines the influence of economic integration--widening of the trading area--on economic development and the demographic transition. Economies produce with different technologies depending on their scale. Greater integration between regions (greater extensive scale) is instrumental in changing rates of return, which generates an industrial revolution and provokes changes in child bearing behavior. The demographic transition follows from the mortality response to income and birth response to greater scale. The model is calibrated and simulated using historical data from Europe. Historical evidence is cited to support the idea that integration precedes the dramatic rise in economic growth rates. Copyright 2002 by Kluwer Academic Publishers

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  • McDermott, John, 2002. "Development Dynamics: Economic Integration and the Demographic Transition," Journal of Economic Growth, Springer, vol. 7(4), pages 371-409, December.
  • Handle: RePEc:kap:jecgro:v:7:y:2002:i:4:p:371-409
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    Cited by:

    1. Agénor, Pierre-Richard & Dinh, Hinh T., 2015. "Social capital, product imitation and growth with learning externalities," Journal of Development Economics, Elsevier, vol. 114(C), pages 41-54.
    2. Thomas Gries & Rainer Grundmann, 2014. "Trade and fertility in the developing world: the impact of trade and trade structure," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 1165-1186, October.
    3. Galor, Oded, 2009. "2008 Lawrence R. Klein Lecture -- Comparative Economic Development: Insights from Unified Growth Theory," CEPR Discussion Papers 7519, C.E.P.R. Discussion Papers.
    4. Agénor, Pierre-Richard & Neanidis, Kyriakos C., 2015. "Innovation, public capital, and growth," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 252-275.
    5. Tamura, Robert, 2006. "Human capital and economic development," Journal of Development Economics, Elsevier, vol. 79(1), pages 26-72, February.
    6. Oded Galor & Andrew Mountford, 2008. "Trading Population for Productivity: Theory and Evidence," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 1143-1179.
    7. Alex Trew, 2007. "Endogenous Financial Development and Industrial Takeoff," CDMA Working Paper Series 200702, Centre for Dynamic Macroeconomic Analysis.
    8. Alex Trew, 2008. "Infrastructure Finance and Industrial Takeoff in the United Kingdom," CDMA Working Paper Series 200809, Centre for Dynamic Macroeconomic Analysis.
    9. Lagerlof, Nils-Petter, 2003. "Gender Equality and Long-Run Growth," Journal of Economic Growth, Springer, vol. 8(4), pages 403-426, December.
    10. Alex Trew, 2010. "Infrastructure Finance and Industrial Takeoff in England," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(6), pages 985-1010, September.
    11. Oded Galor & Andrew Mountford, 2004. "Trading Population for Productivity," GE, Growth, Math methods 0410001, University Library of Munich, Germany.
    12. Tiago Sequeira, 2004. "Mortality Rate and Property Rights in a Model with Human Capital and R&D," Development and Comp Systems 0408010, University Library of Munich, Germany.
    13. Florian Immanuel Schumacher & Joilson Dias, 2011. "The Human Capital Function: Sectoralexternalities," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 215, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    14. Baris Alpaslan, 2015. "Public Spending and Transitional Dynamics of an Innovation-Based Growth Model," Centre for Growth and Business Cycle Research Discussion Paper Series 199, Economics, The Univeristy of Manchester.
    15. Verónica Mies, 2010. "Adoption Technology Targets and Knowledge Dynamics: Consequences for Long-Run Prospects," Documentos de Trabajo 385, Instituto de Economia. Pontificia Universidad Católica de Chile..
    16. Leonid V. Azarnert, 2008. "Foreign Aid, Fertility and Human Capital Accumulation," Economica, London School of Economics and Political Science, vol. 75(300), pages 766-781, November.

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