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on the efficiency of resource allocation. Our results suggest that there is an economically and statistically robust …, stringent regulations are more disruptive to resource allocation in more innovative sectors, though the nature of innovation …
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high-quality firms, who under-produce in the market allocation. Furthermore, the fixed cost generates a positive externality …
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We examine the gains from globalization in the presence of firm heterogeneity and potential resource misallocation. We show theoretically that without distortions, bilateral and export liberalizations increase aggregate welfare and productivity, while import liberalization has ambiguous effects....
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