Logo
Munich Personal RePEc Archive

Population growth and structural transformation

Ho, Chi Pui (2015): Population growth and structural transformation.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_68014.pdf]
Preview
PDF
MPRA_paper_68014.pdf

Download (894kB) | Preview

Abstract

Population growth induces structural transformation. We posit two-sector growth models where land is a fixed production factor. When two sectoral goods are consumption complements, population growth pushes production factors towards the sector with stronger diminishing returns to labor through the relative price effect. We clarify conditions when production factors “embrace the land” and “escape from land” throughout development, and the models’ asymptotic growth paths. We calibrate the models to simulate sectoral shifts in pre-industrial England and modern United States. In both cases, relying solely on relative price effects (population growth, technological progress and capital deepening) predicts too slow structural transformation.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.