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Development Dynamics: Economic Integration and the Demographic Transition

  • McDermott, John

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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Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 7 (2002)
Issue (Month): 4 (December)
Pages: 371-409

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Handle: RePEc:kap:jecgro:v:7:y:2002:i:4:p:371-409
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  1. Kelly, Morgan, 1997. "The Dynamics of Smithian Growth," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 939-64, August.
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  20. McDermott, John, 1999. " Mercantilism and Modern Growth," Journal of Economic Growth, Springer, vol. 4(1), pages 55-80, March.
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