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We estimate the respective contributions of institutions, geography, and trade in determining cross-country income … levels using recently developed instruments for institutions and trade. Our results indicate that the quality of institutions … ""trumps"" everything else. Controlling for institutions, geography have at best weak direct effects on incomes, although it …
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Abstract: Both global and regional economic linkages have strengthened substantially over the past quarter century. We employ a dynamic factor model to analyze the implications of these linkages for the evolution of global and regional business cycles. Our model allows us to assess the roles...
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In theory, one of the main benefits of financial globalization is that it should allow for more efficient international risk sharing. This paper provides a comprehensive empirical evaluation of the patterns of risk sharing among different groups of countries and examines how international...
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