Title page 1

Contents 1

Abstract 2

I. Introduction 3

II. Population Growth 4

III. Model 5

1. Production 5

2. Preferences 7

IV. Solution 7

1. Autarky 7

2. Trade 9

2.1. Constant returns to scale: 𝜙 = 1 9

2.3. Increasing returns to scale: 𝜙 > 1 12

V. Trade Pattern Reversal 13

VI. Conclusion 14

References 15

Appendix 1. Impact of Population on Welfare 16

Appendix 2. Impact of Population L on Commodity Employment LT Under Trade 18

Appendix 3. Stability of Short-Term Equilibrium for 𝜙 > 1 18