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Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to comparative advantage, expanding the industries that do...
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question whether the world has become smaller in terms of economic distance. Instead of focussing on the transmission of single … results for the most recent period suggest that a uniform shock to output volatility in the world economy roughly …
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