Ozler, Sule; Rodrik, Dani - 2021
work. we find that a high level of urbanization magnifies the investment reduction in response to an external shock. This … determinant of the private investment response. We look at a simple model of political-economic equilibrium to make this intuition … find that ambiguities abound: domestic politics can magnify or dampen the effect of the external shock. In our empirical …