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Recent empirical work has established that 'democracy causes growth'. In this paper, we determine the underlying … institutions which drive this relationship using data from the Varieties of Democracy project. We sketch how incentives and … selection into institutional change, and run horse races between underlying institutions. We find that freedom of expression …
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We set up a two-country, regional model of trade in financial services. Competitive firms in each country manufacture non-traded consumer goods in an uncertain productive environment, borrowing funds from a bank in either the home or the foreign market. Duopolistic banks can choose their levels...
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This paper examines the relationship between foreign and domestic investment activity of multinational enterprises. The empirical analysis is based on micro data of German firms and their operations at home and abroad, including information on investment in fixed assets. The empirical approach,...
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