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This paper investigates the effects of fixed versus flexible exchange rates on firms’ location choices and on countries’ specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are...
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This paper shows that exchange rate variability promotes agglomeration of economic activity. Under flexible rates, firms located in large markets have lower variability of sales, reinforcing concentration of firms there. Empirical evidence on OECD countries demonstrates (1) that the negative...
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efficiency, and hindering domestic integration and export performance. This paper assesses the state of Brazil's infrastructure …, in light of past investment trends and various quality and quantity indicators. Brazil's infrastructure stock and its …
Persistent link: https://www.econbiz.de/10011373918
Shocks stemming from Brazil - the large neighbor in South America - have historically been a source of concern for … policy-makers in other countries of the region. This paper studies the importance of Brazil's influence on its neighboring … setting. While trade linkages with Brazil are significant for the Southern Cone countries (Argentina, Bolivia, Chile, Paraguay …
Persistent link: https://www.econbiz.de/10009618584