Economic Transformation, Population Growth, and the Long-Run World Income Distribution

Marcos Chamon () and Michael Kremer

No 2006/021, IMF Working Papers from International Monetary Fund

Abstract: This paper considers the long-run evolution of the world economy in a model where countries' opportunities to develop depend on their trade with advanced economies. As developing countries become advanced, they further improve trade opportunities for the remaining developing countries. Whether or not the world economy converges to widespread prosperity depends on the population growth differential between developing and advanced economies, the rate at which countries develop, and potentially on initial conditions. A calibration using historical data suggests that the long-run prospects for lagging developing regions, such as Africa, likely hinge on the sufficiently rapid development of China and India.

Keywords: WP; small country; Population; growth; economic development; international trade; export opportunity; developing country labor; transaction cost; growth response; advanced country; growth determinant; Population growth; Migration; Personal income; Demographic change; Global (search for similar items in EconPapers)
Pages: 20
Date: 2006-01-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=18739 (application/pdf)

Related works:
Journal Article: Economic transformation, population growth and the long-run world income distribution (2009)
Working Paper: Economic Transformation, Population Growth and the Long-Run World Income Distribution (2006)
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:imf:imfwpa:2006/021

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().