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By studying the interaction between social capital and decentralization, we show that political decentralization can be a source of divergence across heterogeneous regions. In particular, we claim that since the local endowments of social capital display their effect on the economy mainly...
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regions, we find evidence for conditional convergence with speed around two percent. The convergence process between countries … is dominated by the catching up process of regions in Central and Eastern Europe (CEE), whereas convergence within …
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regions, we find evidence for conditional convergence with speed around two percent. The convergence process between countries … is dominated by the catching up process of regions in Central and Eastern Europe (CEE), whereas convergence within …
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