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One criticism of the gravity model of international trade is that it takes no account of comparative advantage. This critique is particularly important when the gravity model is considered for policy applications such as identifying priority markets for trade promotion programs. For example, the...
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Translated to a cross-country context, the Solow model (Solow, 1956) predicts that international differences in steady state output per person are due to international differences in technology for a constant capital output ratio. However, most of the cross-country growth literature that refers...
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