Globalization and the industrial revolution

Ferreira, Pedro Cavalcanti, Pessôa, Samuel and Rodrigues Dos Santos, Marcelo (2016) Globalization and the industrial revolution. Macroeconomic Dynamics, 20 (3). pp. 643-666. ISSN 1365-1005

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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 for 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 match the data closely, but the closed-economy model cannot explain the fall in the value of land relative to wages observed in the nineteenth century. Without globalization, the transition period in the British economy would have been considerably longer than that observed in the data and key variables, such as the share of labor force in agriculture, would have converged to figures very distant from the actual ones.

Item Type: Article
Schools and Departments: University of Sussex Business School > Economics
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 10 Oct 2022 12:24
Last Modified: 10 Oct 2022 12:24
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