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Industrialization and technological progress with many countries under a non-homothetic preference

Author

Listed:
  • Keita, Kamei

Abstract

This paper examines industrialization in each country by using a model with a continuum of countries. Our model is mainly based on Yanagawa’s (1996) model. However, unlike Yanagawa’s model, our model adopts the Stone-Geary utility function of a non-homothetic preference. The main results are as follows. First, we find that an increase in agricultural productivity leads to industrialization under the nonhomothetic preference, whereas it leads to deindustrialization under the homothetic preference. Second, the widening disparity of manufacturing productivity among countries leads to an increase in the number of agricultural countries in the world, even if it is under the non-homothetic preference.

Suggested Citation

  • Keita, Kamei, 2011. "Industrialization and technological progress with many countries under a non-homothetic preference," MPRA Paper 31186, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31186
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    References listed on IDEAS

    as
    1. Spilimbergo, Antonio, 2000. "Growth and Trade: The North Can Lose," Journal of Economic Growth, Springer, vol. 5(2), pages 131-146, June.
    2. Yanagawa, Noriyuki, 1996. "Economic development in a world with many countries," Journal of Development Economics, Elsevier, vol. 49(2), pages 271-288, May.
    3. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 2001. "Beyond Balanced Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 869-882.
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    Keywords

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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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