Open AccessTrading Population for Productivity: Theory and Evidence
Author(s) -
GALOR ODED,
MOUNTFORD ANDREW
Publication year - 2008
Publication title -
review of economic studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 15.641
H-Index - 141
eISSN - 1467-937X
pISSN - 0034-6527
DOI - 10.1111/j.1467-937x.2008.00501.x
Subject(s) - economics , productivity , human capital , investment (military) , per capita income , population , population growth , fertility , distribution (mathematics) , per capita , international economics , income distribution , demographic economics , labour economics , international trade , monetary economics , macroeconomics , economic growth , inequality , mathematical analysis , demography , mathematics , sociology , politics , political science , law
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 has been chanelled 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.