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• W801253557 abstract "Demographic transition and international trade are introduced into classical models of development and rural urban migration by Lewis, Fei and Ranis, and Harris and Todaro. The basic result is that people working in the sector using natural resources have a higher birth rate and give less education to their children than people working in the modern sector using human capital as the sole input. Rural-urban migration thus changes parents' decisions on fertility and children's education: urbanization and demographic transition are two sides of the same coin. The model is also consistent with growth empirics finding no statistically significant relationship between education and growth while at the micro-level individual incomes are significantly affected by education. A closed economy never faces the resource curse. The autarkic growth rate is a weighted average of human capital growth rates in rural and urban areas with the weight equalling the share of rural goods in final demand. A resource abundant country opening to international trade may face resource curse if it completely specializes in the production of the resource intensive good. Its terms of trade can decline over an extended period if its population growth rate is high. This mechanism of terms of trade deterioration focuses solely on demographic factors and differs from the original Prebisch-Singer hypothesis. The result also shows the potential importance of birth control in development. JEL Classification: F11, J13, J24, 013, 018, 019" @default.
• W801253557 created "2016-06-24" @default.
• W801253557 creator A5060609869 @default.
• W801253557 date "2004-01-01" @default.
• W801253557 modified "2023-09-27" @default.
• W801253557 title "International Trade, Resource Curse and Demographic Transition" @default.
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• W801253557 hasPublicationYear "2004" @default.
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