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

Richard Baldwin, Philippe Martin and Gianmarco Ottaviano

No 496, Working Paper Series from Research Institute of Industrial Economics

Abstract: This paper takes a 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 all are trigged by a gradual fall in the cost of doing business internationally. In the first stage, while trade costs are high, industry is dispersed and growth is low. In the second stage, the north industrializes rapidly, growth takes off and the south diverges. In the third stage, high growth becomes self sustaining. The model shows under which conditions, in a fourth stage, the south can quickly industrialize and converge.

Keywords: Growth Take-Off; Industrial Revolution; Economic Geography; Endogenous Growth; Trade and Development (search for similar items in EconPapers)
JEL-codes: F01 F43 N13 O19 (search for similar items in EconPapers)
Pages: 45 pages
Date: 1998-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://swopec.hhs.se/iuiwop/papers/iuiwop0496.pdf.zip (application/pdf)
https://swopec.hhs.se/iuiwop/papers/iuiwop0496.pdf (application/pdf)
https://swopec.hhs.se/iuiwop/papers/iuiwop0496.ps.zip (application/postscript)
https://swopec.hhs.se/iuiwop/papers/iuiwop0496.ps (application/postscript)

Related works:
Chapter: Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs (2021)
Journal Article: Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs (2001)
Working Paper: Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs (2001)
Working Paper: Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs (1998)
Working Paper: Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0496

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().