m] such that the growth rate of TFP is identical across sectors prior to industrialization.
However, by removing factor prices from (3), I derive a condition for industrialization that is dependent upon population density
t], can be shown to be constant in an overlapping generations model prior to industrialization.
In contrast to (3), Equation (6) implies equality of population density at industrialization, with differences in technology absorption, [[epsilon].
This paper shows that once China's lower population density is accounted for, there is no longer a puzzle; the standard growth models correctly predict the earlier industrialization of England.