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

Alain Desdoigts; Fernando Jaramillo

doi:10.1016/j.jinteco.2009.07.008

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

Alain Desdoigts
, Fernando Jaramillo

urosario

Research output: Contribution to Journal › Research Article › peer-review

8 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 language	English (US)
Pages (from-to)	248-258
Number of pages	11
Journal	Journal of International Economics
Volume	79
Issue number	2
DOIs	https://doi.org/10.1016/j.jinteco.2009.07.008
State	Published - Nov 2009

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 10 Reduced Inequalities

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

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10.1016/j.jinteco.2009.07.008

Cite this

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

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.",

author = "Alain Desdoigts and Fernando Jaramillo",

note = "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 Universit{\'e} Paris 1 Panth{\'e}on-Sorbonne and Universit{\'e} 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.",

year = "2009",

month = nov,

doi = "10.1016/j.jinteco.2009.07.008",

language = "English (US)",

volume = "79",

pages = "248--258",

journal = "Journal of International Economics",

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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.

UR - https://www.scopus.com/pages/publications/70350344977

UR - https://www.scopus.com/pages/publications/70350344977#tab=citedBy

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 -

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

Abstract

UN SDGs

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