Trading Population for Productivity: Theory and Evidence

44 Pages Posted: 9 Jun 2008

See all articles by Oded Galor

Oded Galor

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

Andrew Mountford

Royal Holloway, University of London

Multiple version iconThere are 2 versions of this paper

Date Written: February 2008

Abstract

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 channelled 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.

Keywords: Demographic Transition, Growth, Human Capital, International Trade

JEL Classification: F11, F43, J10, N30, O40

Suggested Citation

Galor, Oded and Mountford, Andrew, Trading Population for Productivity: Theory and Evidence (February 2008). CEPR Discussion Paper No. DP6678, Available at SSRN: https://ssrn.com/abstract=1140960

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)

London
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
Egham
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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