TY - JOUR
T1 - Trade, demand spillovers, and industrialization
T2 - The emerging global middle class in perspective
AU - Desdoigts, Alain
AU - Jaramillo, Fernando
N1 - Funding Information:
We thank Micael Castanheira, Simon Gilchrist, Paolo Guarda, Fabien Moizeau, Jean-Philippe Tropeano, and Thierry Verdier for their comments and suggestions. The present version owes much to thoughtful comments by anonymous referees. The paper also benefited from the feedback of the Editor and seminar participants at Crest-Insee (Paris), ECARES (Bruxelles), GREMAQ (Toulouse), the Workshop in Development Economics (Louvain-La-Neuve 2005), the University of Warwick, and the Final Conference of the RTN “Trade, Industrialisation and Development” (CEPR, Paris 2006). Fernando Jaramillo acknowledges the hospitality of Université Paris 1 Panthéon-Sorbonne and Université Paris-Est and funding from the Centre National de la Recherche Scientifique (CNRS) . The standard disclaimer applies.
Copyright:
Copyright 2009 Elsevier B.V., All rights reserved.
PY - 2009/11
Y1 - 2009/11
N2 - In this paper, we investigate international demand spillovers brought about by a global middle class and their impact on trade patterns and industrialization. We propose a multi-industry and two-country trade model featuring demand complementarities propagating increasing returns across industries and national boundaries. We show how the international extent of demand spillovers depends upon asymmetries in domestic income distribution, labor efficiency, and labor force size; that is, on the global distribution of real income.
AB - In this paper, we investigate international demand spillovers brought about by a global middle class and their impact on trade patterns and industrialization. We propose a multi-industry and two-country trade model featuring demand complementarities propagating increasing returns across industries and national boundaries. We show how the international extent of demand spillovers depends upon asymmetries in domestic income distribution, labor efficiency, and labor force size; that is, on the global distribution of real income.
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U2 - 10.1016/j.jinteco.2009.07.008
DO - 10.1016/j.jinteco.2009.07.008
M3 - Research Article
AN - SCOPUS:70350344977
SN - 0022-1996
VL - 79
SP - 248
EP - 258
JO - Journal of International Economics
JF - Journal of International Economics
IS - 2
ER -
