Trading Population for Productivity: Theory and Evidence

Oded Galor () and Andrew Mountford ()

No 6678, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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 have been channelled 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.

Keywords: Demographic Transition; Growth; Human Capital; International Trade (search for similar items in EconPapers)
JEL-codes: F11 F43 J10 N30 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-edu, nep-hrm, nep-int and nep-opm
Date: 2008-02
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Working Paper: Trading Population for Productivity: Theory and Evidence (2008)
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