Template-Type: ReDIF-Paper 1.0
Author-Name:  Pedro Cavalcanti Ferreira
Author-Name-First: Pedro Cavalcanti
Author-Name-Last: Ferreira
Author-Name:  Samuel Pessôa
Author-Name-First: Samuel
Author-Name-Last: Pessôa
Author-Name: Marcelo Rodrigues dos Santos
Author-Name-First: Marcelo Rodrigues dos
Author-Name-Last: Santos
Title: Globalization and the Industrial Revolution
Abstract:  This paper argues that trade specialization played an indispensable role in supporting the Industrial Revolution. We calibrate a two-good and two-sector overlapping generations model to Englandís historical development and investigate how much different Englandís development path would have been if it had not globalized in 1840. We show that the two-sectors closed economy model cannot explain the fall in the value of land relative to wages observed in the 19th century and that, absent globalization, the British economy would never have escaped its Malthusian trap.
Length:  28 pages
Creation-Date:  2011
Order-URL: https://repositorio.insper.edu.br/handle/11224/5867
File-URL: https://repositorio.insper.edu.br/handle/11224/5867
File-Format: text/html
File-Function: Full text
Number: 146
Handle: RePEc:aap:wpaper:146