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Globalization and the industrial revolution
journal contribution
posted on 2023-06-10, 05:03 authored by Pedro Cavalcanti Ferreira, Samuel Pessôa, Marcelo Rodrigues dos SantosMarcelo Rodrigues dos SantosThis 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.
History
Publication status
- Published
Journal
Macroeconomic DynamicsISSN
1365-1005Publisher
Cambridge University Press (CUP)External DOI
Issue
3Volume
20Page range
643-666Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes