American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Trade and the Diffusion of the Industrial Revolution
American Economic Journal: Macroeconomics
vol. 1,
no. 1, January 2009
(pp. 1–25)
Abstract
This paper proposes a model to describe the evolution of real gross domestic product (GDP) in the world economy that is intended to apply to all open economies. The parameters of the model are calibrated using evidence from Sachs and Warner on economies classed as open, from Parente and Prescott on economies that have successfully begun to develop, and from Kuznets and the World Bank on the employment share of agriculture in various times and places. The theory predicts convergence of the income levels and growth rates in the open economies and has strong but reasonable implications for transition dynamics. (JEL F41, O33, O47)Citation
Lucas, Robert E. 2009. "Trade and the Diffusion of the Industrial Revolution." American Economic Journal: Macroeconomics 1 (1): 1–25. DOI: 10.1257/mac.1.1.1JEL Classification
- F41 Open Economy Macroeconomics
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence