Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962413 | Journal of International Economics | 2009 | 11 Pages |
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Alain Desdoigts, Fernando Jaramillo,