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Whether a firm is able to attract foreign capital and whether it may participate at the export market depends on …. These findings are established through the estimation of a spatial bivariate probit model. …
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We set up a trade model with heterogeneous firms and a worker population that is heterogeneous in two dimensions: workers are either skilled or unskilled, and within each skill category there is a continuum of abilities. Workers with high abilities, both skilled and unskilled, are matched to...
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