Trade, demand spillovers, and industrialization: The emerging global middle class in perspective Academic Article


  • Journal of International Economics


  • In this paper, we investigate international demand spillovers brought about by a global middle class and their impact on trade patterns and industrialization. We propose a multi-industry and two-country trade model featuring demand complementarities propagating increasing returns across industries and national boundaries. We show how the international extent of demand spillovers depends upon asymmetries in domestic income distribution, labor efficiency, and labor force size; that is, on the global distribution of real income. © 2009 Elsevier B.V. All rights reserved.

publication date

  • 2009/11/1


  • Asymmetry
  • Complementarity
  • Demand model
  • Income distribution
  • Increasing returns
  • Industrialization
  • Industry
  • Labor force
  • Labour efficiency
  • Middle class
  • Real income
  • Spillover
  • Trade patterns

International Standard Serial Number (ISSN)

  • 0022-1996

number of pages

  • 11

start page

  • 248

end page

  • 258