Population Growth Overshooting and Trade in Developing Countries

Ulla Lehmijoki and Tapio Palokangas

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: This paper examines a developing economy by a family-optimization model in which the number of children is a normal good in preferences. Trade liberalization generates two effects: an income effect, which raises population growth in the short run; and a gender wage effect, which decreases that in the long run. With higher income, families invest more in capital. Because female labor is more complementary to capital, a higher level of investment increases women's relative wages and attracts more of them from child rearing into production. Consequently, the population growth rate falls below the original level in the long run. This paper also provides some empirical evidence on these results.

Keywords: Keywords: population growth; international trade (search for similar items in EconPapers)
JEL-codes: J13 J16 O41 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2006-06
New Economics Papers: this item is included in nep-dev and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Population growth overshooting and trade in developing countries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c011_025

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