Trading Population for Productivity: Theory and Evidence

Galor, Oded; Mountford, Andrew

doi:10.2139/ssrn.1086137

Cited by 113 publications

(195 citation statements)

References 82 publications

Supporting

Mentioning

183

Contrasting

Unclassified

Order By: Relevance

“…Since we are only interested in :l = x :l =L :l , we use data on purchasing power parities for agriculture and manufacturing goods consumption from the International Comparison Program (ICP) to construct proxies for p :l and strip out price variation from the data (see Appendix B for details). 23 Estimates of the trade cost matrices can be obtained via gravity equation regressions using cross-country manufacturing and agricultural trade data. To see this, note that exports in the model are:…”

Section: Parameterizationmentioning

confidence: 99%

Geography, non-homotheticity, and industrialization: A quantitative analysis

Breinlich

Cuñat

2013

Journal of Development Economics

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Geography, Non-Homotheticity, and Industrialization: A Quantitative Analysis Terms of use: Documents in AbstractWe propose a quantitative framework for the analysis of industrialization in which specialization in manufacturing or agriculture is driven by comparative advantage and nonhomothetic preferences. Countries are integrated through trade but trade is not costless and geographic position matters. We use a number of analytical examples and a multi-country calibration to explain two important empirical regularities: (i) there is a strong positive correlation between proximity to large markets and levels of manufacturing activity; (ii) there is a positive correlation between the ratio of agricultural to manufacturing productivity and shares of manufacturing in GDP. Our calibrated model replicates these facts and also provides a better fit to cross-sectional data on manufacturing shares than frameworks which ignore the role of trade costs or non-homotheticity. We use the calibrated model to quantitatively analyze the effect of increases in agricultural productivity and a further lowering of trade barriers. JEL-Code: F110, F120, F140, O140.

show abstract

Section: Parameterizationmentioning

confidence: 99%

Geography, non-homotheticity, and industrialization: A quantitative analysis

Breinlich

Cuñat

2013

Journal of Development Economics

View full text Add to dashboard Cite

show abstract

“…Building on seminal work by Galor and Weil (2000), several attempts have been made to try to merge the two eras, and to identify the underlying causes of the demographic transition. An incomplete list of studies includes Boucekkine et al (2002Boucekkine et al ( , 2007, Doepke (2004), Galor and Moav (2002), Galor and Mountford (2008), Hansen and Prescott (2002), Jones (2001), Kögel and Prskawetz (2001), Lucas (2002), Strulik (2003), Tamura (2002), and Weisdorf (2004).…”

Section: Introductionmentioning

confidence: 99%

Population, food, and knowledge: a simple unified growth theory

2008

View full text Add to dashboard Cite

Abstract. This paper provides a unified growth theory, i.e. a model that explains the very long-run economic and demographic development path of industrialized economies, stretching from the pre-industrial era to the present-day and beyond. Making strict use of Malthus' (1798) so-called preventive check hypothesis -that fertility rates vary inversely with the price of food -the current study offers a new and straightforward explanation for the demographic transition and the break with the Malthusian era. Employing a two-sector framework with agriculture and industry, we demonstrate how fertility responds differently to productivity and income growth, depending on whether it emerges in agriculture or industry. agricultural productivity and income growth makes food goods, and therefore children, relatively less expensive. Industrial productivity and income growth, on the other hand, makes food goods, and therefore children, relatively more expensive. The present framework lends support to existing unified growth theories and is well in tune with historical evidence about structural transformation.

show abstract

“…See, Galor and Weil (2000), Kögel and Prskawetz (2001), Jones, 2001, Lucas (2002, Boucekkine et al (2002), Doepke (2004), Galor and Mountford (2008), Strulik and Weisdorf (2008) and many others. Of course, the present paper does not deny the importance of demographic change for long-run economic development.…”

mentioning

confidence: 99%