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

Alain Desdoigts () and Fernando Jaramillo ()
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Alain Desdoigts: Université Paris-Est - Cité Descartes, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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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: 2009-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00429016v1
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Citations: View citations in EconPapers (12)

Published in Journal of International Economics, 2009, 79 (2), pp.248-258. ⟨10.1016/j.jinteco.2009.07.008⟩

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Related works:
Journal Article: Trade, demand spillovers, and industrialization: The emerging global middle class in perspective (2009)
Working Paper: Trade, demand spillovers and industrialization: The emerging global middle class in perspective (2009)
Working Paper: Trade, demand spillovers, and industrialization: The emerging global middle class in perspective (2009)
Working Paper: Trade, demand spillovers and industrialization: The emerging global middle class in perspective (2009)
Working Paper: Trade, demand spillovers, and industrialization: The emerging global middle class in perspective (2009)
Working Paper: Trade, demand spillovers, and industrialization: the emerging global middle class in perspective (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-00429016

DOI: 10.1016/j.jinteco.2009.07.008

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