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In this paper, employment adjustment at the firm level is estimated with a large panel of business survey data from West German manufacturing. The specification is based on a framework of monopolistic competition in the product market. Special emphasis is devoted to the analysis of the impact of...
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agglomeration and innovation. By identifying the factors and policies to promote upgrading, the authors establish the theoretical … and policy basis for transforming industrial clusters from production-oriented to innovation-oriented agglomerations …
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