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Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs

Richard Baldwin, Philippe Martin and Gianmarco Ottaviano

No 1803, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper takes a modest step towards formalizing the theoretical interconnections among four post-Industrial-Revolution phenomena – the industrialization and growth take-off of rich ‘northern’ nations, massive global income divergence, and rapid trade expansion. Specifically, we present a stages-of-growth model in which the four phenomena are jointly endogenous and are all triggered by a gradual fall in the cost of doing business internationally. Beyond providing a simple framework for exploring the logical connections among these phenomona, the model itself may be of some interest because it is, to our knowledge, the first endogenous growth model to display this Rostovian stages-of-growth feature.

Keywords: Economic Geography; Endogenous Growth; growth take-off; industrial revolution; trade and development (search for similar items in EconPapers)
JEL-codes: F01 F43 N13 O19 (search for similar items in EconPapers)
Date: 1998-03
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Citations: View citations in EconPapers (33)

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Related works:
Chapter: Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs (2021) Downloads
Journal Article: Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs (2001) Downloads
Working Paper: Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs (2001)
Working Paper: Global Income Divergence, Trade and Industrialisation: The Geography of Growth Take-Offs (1998) Downloads
Working Paper: Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs (1998) Downloads
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