Trade and the Great Divergence: The Family Connection

12 Pages Posted: 19 May 2006

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 2006

Abstract

This research argues that the rapid expansion of international trade in the second phase of the industrial revolution has played a major role in the timing of demographic transitions across countries and has thereby been a significant determinant of the distribution of world population and a prime cause of the 'Great Divergence' in income per capita across countries in the last two centuries. The analysis suggests that international trade had an asymmetrical effect on the evolution of industrial and non-industrial economies. While in the industrial nations the gains from trade were directed primarily towards investment in education and growth in output per capita, a significant portion of the gains from trade in non-industrial nations was channelled towards population growth.

Keywords: International trade, demographic transition, industrial revolution, growth, human capital

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

Suggested Citation

Galor, Oded and Mountford, Andrew, Trade and the Great Divergence: The Family Connection (February 2006). CEPR Discussion Paper No. 5490. Available at SSRN: https://ssrn.com/abstract=903308

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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