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

  • Keita, Kamei
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    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.

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    File URL: http://mpra.ub.uni-muenchen.de/31186/1/MPRA_paper_31186.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31186.

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    Date of creation: 10 Feb 2011
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    Handle: RePEc:pra:mprapa:31186
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    1. Yanagawa, Noriyuki, 1996. "Economic development in a world with many countries," Journal of Development Economics, Elsevier, vol. 49(2), pages 271-288, May.
    2. Kongsamut, Piyabha & Rebelo, Sérgio & Xie, Danyang, 1997. "Beyond Balanced Growth," CEPR Discussion Papers 1693, C.E.P.R. Discussion Papers.
    3. Spilimbergo, Antonio, 2000. " Growth and Trade: The North Can Lose," Journal of Economic Growth, Springer, vol. 5(2), pages 131-46, June.
    4. Sergio Rebelo & Piyabha Kongsamut & Danyang Xie, 2001. "Beyond Balanced Growth," IMF Working Papers 01/85, International Monetary Fund.
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