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have declined sufficiently, to wait for the predictions of the neo-classical theory of factor mobility to materialise …. According to this theory, production factors respond to market disequilibrium by moving from regions in which they are abundant …
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New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to...
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