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Population growth and north-south uneven development

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  • Hiroaki Sasaki

Abstract

This paper develops a model of North-South trade and economic development. The model is consistent with two empirical facts: (1) the growth rate of income per capita differs across countries; and (2) the relationship between the growth of population and that of income per capita differs for developed and developing countries. We assume that the North and the South are characterized by increasing-returns-to-scale and decreasing-returns-to-scale technologies, respectively. Real national income grows at the same rate in both countries along the balanced growth path owing to a terms of trade effect. However, real income per capita grows at different rates because of population growth differentials. In developed countries, the correlation between population growth and income per capita growth can be positive or negative while in developing countries, the correlation is negative. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

Suggested Citation

  • Hiroaki Sasaki, 2011. "Population growth and north-south uneven development," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 307-330, April.
  • Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:307-330
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    File URL: http://hdl.handle.net/10.1093/oep/gpq019
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    Cited by:

    1. Hiroaki Sasaki, 2013. "Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model," Discussion papers e-13-004, Graduate School of Economics Project Center, Kyoto University.
    2. Sasaki, Hiroaki, 2015. "International Trade And Industrialization With Negative Population Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 19(08), pages 1647-1658, December.
    3. Hiroaki Sasaki, 2012. "Trade Patterns and Non-Scale Growth between Two Countries," Discussion papers e-12-006, Graduate School of Economics Project Center, Kyoto University.
    4. Sasaki, Hiroaki & Hoshida, Keisuke, 2014. "Semi-Endogenous R&D Growth Model with Negative Population Growth," MPRA Paper 53833, University Library of Munich, Germany.
    5. repec:eee:streco:v:41:y:2017:i:c:p:1-12 is not listed on IDEAS

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