Pellegrino, Bruno; Spolaore, Enrico; Wacziarg, Romain - 2021
four barriers (geographic distance, cultural distance, foreign investment taxation, and political risk) accounts for a … benchmark calibration, we estimate that the capital misallocation induced by these barriers reduces World GDP by 7%, compared to …-country inequality: the standard deviation of log capital per employee is 80% higher than it would be in a world without barriers to …