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| Author: | Sasaki, H. |
| Title: | Population growth and north-south uneven development |
| Journal: | Oxford Economic Papers
2011 : APR, VOL. 63:2, p. 307-330 |
| Index terms: | economic growth productivity international trade open economy macroeconomics models |
| Language: | eng |
| Abstract: | This paper outlines a model of North-South trade and economic development. The model holds together with two empirical facts: (1) the growth rate of income per capita varies across countries; and (2) the relationship between population growth and income per capita differs for developed and developing countries. It is assumed that the North and the South have increasing-returns-to-scale and decreasing-returns-to-scale technologies, respectively. Real national income grows at the same pace in both countries along the balanced growth path owing to a terms of trade impact. However, real income per capita grows at different rates due to population growth differentials. In developed countries, the correlation between population growth and income per capita growth can be either positive or negative while in developing countries' case, the correlation is negative. |
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