EconPapers    
Economics at your fingertips  
 

Trade, Technology and the Great Divergence

Kevin H. O’Rourke, Ahmed Rahman () and Alan Taylor ()
Additional contact information
Kevin H. O’Rourke: Oxford University

Authors registered in the RePEc Author Service: Kevin Hjortshøj O'Rourke ()

Departmental Working Papers from United States Naval Academy Department of Economics

Abstract: This paper develops a model that captures the key features of the Industrial Revolution and the Great Divergence between the industrializing \North" and the lagging \South." In particular, a convincing story is needed for why North-South divergence occurred so dramatically during the late 19th Century, a good hundred years after the beginnings of the Industrial Revolution. To this end we construct a trade/growth model that includes both endogenous biased technologies and intercontinental trade. The Industrial Revolution began as a sequence of unskilled-labor intensive innovations which initially incited fertil- ity increases and limited human capital formation in both the North and the South. The subsequent co-evolution of trade and technological growth however fostered an inevitable di- vergence in living standards - the South increasingly specialized in production that worsened their terms of trade and spurred even greater fertility increases and educational declines. Biased technological changes in both regions only reinforced this pattern. The model high- lights how pronounced divergence ultimately arose from interactions between specialization from trade and technological forces.

New Economics Papers: this item is included in nep-his
Date: 2012-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.usna.edu/EconDept/RePEc/usn/wp/usnawp35.pdf (application/pdf)

Related works:
Working Paper: Trade, Technology, and the Great Divergence (2019) Downloads
Working Paper: Trade, Technology, and the Great Divergence (2019) Downloads
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:usn:usnawp:35

Access Statistics for this paper

More papers in Departmental Working Papers from United States Naval Academy Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-12-06
Handle: RePEc:usn:usnawp:35