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Trading Population for Productivity: Theory and Evidence

Oded Galor

Brown University - Department of Economics; Centre for Economic Policy Research (CEPR)

Andrew Mountford

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

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Date posted: January 22, 2008  

Suggested Citation

Galor, Oded and Mountford, Andrew, Trading Population for Productivity: Theory and Evidence (January 21, 2008). Available at SSRN: http://ssrn.com/abstract=1086137 or http://dx.doi.org/10.2139/ssrn.1086137

Contact Information

Oded Galor (Contact Author)
Brown University - Department of Economics ( email )
Providence, RI 02912
United States
HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/
Andrew Mountford
Royal Holloway, University of London ( email )
Royal Holloway, University of London
Surrey TW20 0EX
United Kingdom
+44 1784 443 906 (Phone)
+44 1784 439 534 (Fax)
HOME PAGE: http://personal.rhul.ac.uk/uhte/023/
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References:  67
Citations:  22

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