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"Concerns that (1) growth in developing countries could worsen the US terms of trade and (2) that increased US trade … with developing countries will increase US wage inequality both implicitly reflect the assumption that goods produced in … the United States and developing countries are close substitutes and that specialization is incomplete. In this paper we …
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We explore the question of how political institutions and particularly democracy affect economic growth. Although empirical evidence of a positive effect of democracy on economic performance in the aggregate is weak, we provide evidence that democracy influences productivity growth in different...
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"This paper re-explores the relation between a country's level of wealth and the mix of products it exports. We argue that both are simultaneously determined by countries' capabilities i.e. by countries' productivity and quality levels for each good. Our theoretical setup has two features. (1)...
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