Autor: Pedro Cavalcanti Ferreira

WP056 – 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 England’s historical development and investigate how much different England´s development path would have been if it had not globalized in 1840. The open-economy model is able to closely match the data, but the closed-economy model cannot explain the fall in the value of land relative to wages observed in the 19th century. Without globalization, the transition period in the British economy would be considerably longer than that observed in the data and key variables, such as the share of labor force in agriculture, would have converged to …gures very distant from the actual ones.   Download do Paper Ano: 2013 Working-paper: 056 Pedro Cavalcanti Ferreira Ler todos os Posts de Pedro Cavalcanti Ferreira’s Share...

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