Trading Population for Productivity: Theory and Evidence
Brown University - Department of Economics; Centre for Economic Policy Research (CEPR)
Royal Holloway, University of London
January 21, 2008
This research argues that the differential effect of international trade on the demand for human capital across countries has been a major determinant of the distribution of income and population across the globe. In developed countries the gains from trade have been directed towards investment in education and growth in income per capita, whereas a significant portion of these gains in less developed economies have been channeled towards population growth. Cross-country regressions establish that indeed trade has positive effects on fertility and negative effects on education in non-OECD economies, while inducing fertility decline and human capital formation in OECD economies.
Number of Pages in PDF File: 41
Keywords: International Trade , Demographic Transition, Growth, Human Capital
JEL Classification: O40, F11, F43, J10, N30
Date posted: January 22, 2008
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