Trade, demand spillovers, and industrialization: The emerging global middle class in perspective

Alain Desdoigts, Fernando Jaramillo

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)248-258
Number of pages11
JournalJournal of International Economics
Volume79
Issue number2
DOIs
StatePublished - Nov 2009

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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