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

Alain Desdoigts () and Fernando Jaramillo ()
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Fernando Jaramillo: Universidad del Rosario - Facultad de Economia

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

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.

Keywords: Trade; spillovers; nonhomothetic preferences; world income distribution. (search for similar items in EconPapers)
Date: 2006-02
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Working Paper: Trade, demand spillovers, and industrialization: the emerging global middle class in perspective (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00111186_v3

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