Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs / Richard E. Baldwin, Philippe Martin, Gianmarco I. P. Ottaviano.

Format:

Book

Author/Creator:

Baldwin, Richard E.

Contributor:

National Bureau of Economic Research.

Martin, Philippe.

Ottaviano, Gianmarco I. P.

Series:

Working Paper Series (National Bureau of Economic Research) no. w6458.

NBER working paper series no. w6458

Language:

English

Subjects (All):

Income--Mathematical models.

Income.

Income--Regional disparities--Mathematical models.

Economic development--Mathematical models.

Economic development.

Economic geography--Mathematical models.

Economic geography.

Industrial productivity--Mathematical models.

Industrial productivity.

Industrialization--Mathematical models.

Industrialization.

International trade--Mathematical models.

International trade.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Global Income Divergence, Trade and Industrializatiion

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1998.

Cambridge, MA : National Bureau of Economic Research, 1998.

Summary:

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 triggered 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.

Notes:

Print version record

March 1998.